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Health Sector Payment Transparency Act, 2017 - New Regulation

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Author: Bhavesh Patel

The Ministry of Health and Long-Term Care for the Province of Ontario recently published draft Regulations for the recently enacted Health Sector Payment Transparency Act, 2017 (“HSPTA”). The HSPTA is intended to strengthen transparency in the financial relationships that exist within Ontario's health care system for the ultimate purpose of increasing public trust and confidence.

To achieve its intended purpose, the HSPTA creates various reporting requirements that apply to transactions within the context of certain relationships within the health care system. The HSPTA also mandates analysis and publication of the information. 

One of the main reporting requirements pertains to pharmaceutical and medical device companies where there is a “transfer of value” between them and the health care provider.  While much of the terminology is undefined in the HSPTA, the recently published Regulations provide greater clarify, for example, the Regulations: 

-specify the categories of individuals and organizations that will be “recipients” when in receipt of a “transfer of value” either directly or indirectly from one of the payors listed in the HSPTA;
 
   -specify what constitutes a "transfer of value" and "intermediary"
   -add community pharmacies and laboratories to the list of payors;
   -establish exemptions to the reporting requirements;
   -set the value threshold for reporting;
   -establish the information, manner and frequency of reporting; and,
   -outline the process for requesting corrections of posted information. 

The Ministry is requesting feedback on this regulatory proposal. The draft Regulations are available for public consultation until April 5, 2018.

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Reference:

Ontario's Regulatory Registry, Government of Ontario. Health Sector Payment Transparency Act, 2017, S.O. 2017, c. 25, Schedule 4.

Published on March 12, 2018