By Hani Al-Dajane
Pharmacists and physicists must follow legal and regulatory requirements when operating their respective practices. Pharmacists must also comply with the policies of the Ontario College of Pharmacists (OCP), whereas physicians must comply with the policies of the College of Physicians and Surgeons of Ontario (CPSO). Failure to abide by these compliance requirements could result in fines and disciplinary action.
Note that the following is not an exhaustive list of legal, regulatory, or policy compliance requirements.
What are the corporate compliance requirements for operating a pharmacy?
A pharmacy can be operated as a regular corporation or as a health professional corporation (HPC). In both cases, receiving an OCP certificate of accreditation as a pharmacy is still required for regular corporations operating as a pharmacy.
HPCs generally have a less flexible ownership structure than regulatory corporations. Under the Ontario Business Corporations Act (OBCA) and its regulations, all the shares of an HPC must be owned by a registered pharmacist with the OPC. Moreover, all the directors and officers of an HPC must also be shareholders and registered pharmacists.
However, there are ways that physicians could own a minority of shares in a regular corporation operating as a pharmacy. Talk to a lawyer at Emerge Law PC to learn more about how to best craft your corporate governance and share structure.
What are some other compliance requirements for operating a pharmacy?
The Ontario pharmacy regulation requires a particular pharmacist to be designated as the supervising manager of a pharmacy. The designated manager has certain responsibilities that must be upheld to ensure that the pharmacy remains in regulatory compliance.
Furthermore, the OCP and CPSO, respectively, have policies that prohibit certain arrangements that give rise to a conflict of interest. These conflict-of-interest regulations limit the type of fees, benefits, and compensation that physicians and pharmacists can receive.
These regulations also restrict the kind of rent and lease agreements that these health professionals can enter into.
Pharmacists and physicians should consult with a lawyer from Emerge Law PC to receive counsel on how to maintain compliance with applicable laws, regulations, and policies.
Thank you to Ephraim Barrera for his contribution to this article. The contents of this article are not to be construed as legal advice. Contact Emerge Law’s lawyers for legal assistance.