QuestionsQuestions (DOH ADMINISTRATIVE ORDER NO. 2014-0001)
It is anchored on Republic Act No. 7581 (Price Act), which authorizes the automatic price control and freezing of prices of basic necessities during declared disasters or emergencies, and empowers the President to impose a mandated price ceiling when prices are excessive or unreasonable.
During a state of declared disaster or calamity, unless otherwise proclaimed by the President. Prices are frozen at the prevailing price level.
Unless sooner lifted by the President, it remains in effect for the duration of the situation but not more than sixty (60) days. The President may lift it earlier.
Under Section 7 of RA 7581. It may be imposed when the prevailing price of any basic necessity is excessive or unreasonable, upon recommendation of the implementing agency or the Price Coordinating Council.
It is the situation in which prices (or the price of a particular product) are fixed at the prevailing level and no increase is allowed.
All public and private drug retail outlets, including hospital pharmacies nationwide, shall implement the price freeze or the maximum ceiling price set by the DOH during emergencies upon a declaration by the President.
Basic necessities include specified food and non-food items plus 'drugs classified as essential by the DOH.' Thus, essential medicines are included within 'Basic Necessities' for purposes of the price stabilization framework.
It is the ceiling price for government bidding and procurement set by the DOH for all government agencies based on prevailing tender prices of essential medicines in government hospitals. Government entities must not exceed the DPRI for procurement during emergencies.
All public and private drug retail outlets must submit their prevailing market prices to the DOH.
The DOH consolidates and evaluates submitted market prices and determines a maximum price ceiling as deemed necessary. It also develops a monitoring tool to facilitate implementation.
The DOH disseminates or publishes the price lists of medicines during emergency through various means such as print, radio, television, or web-based posting.
All government entities procuring essential medicines during emergency must not exceed the DPRI. They must follow the DPRI as the ceiling for all procurement modes, including public bidding, direct contracting, negotiated procurement, and shopping.
The DOH, in coordination with the Department of Trade and Industry (DTI) and other concerned government agencies, monitors medicine prices throughout the duration of the state of calamity.
The Council is composed of identified government agencies headed by the Department of Trade and Industry (as stipulated in Section 11 of the Price Act). It has functions provided under Section 12 of the Price Act.
Non-compliance results in sanctions and penalties stated in Section 16 of RA 7581.
It shall take effect immediately.