Regulation - LGIC

Health Sector Payment Transparency Act, 2017 - New Regulation

Regulation Number(s):
Health Sector Payment Transparency Act, 2017 - New Regulation
Instrument Type:
Regulation - LGIC
Bill or Act:
Health Sector Payment Transparency Act, 2017
Summary of Decision:
Note: THIS ACT IS NOT YET IN FORCE. It comes into force on a day to be named by proclamation of the Lieutenant Governor.
Analysis of Regulatory Impact:
New compliance and administrative costs to health sector businesses and organizations are expected to result from this proposal. To comply with the proposed regulations, prescribed payors will need to track, contextualize, and validate with recipients applicable financial transactions in the prescribed format to be published.

As part of its obligations under the Reducing Regulatory Costs for Business Act, 2017, the Ministry of Health and Long-Term Care is conducting a Regulatory Impact Analysis (RIA) of these proposed regulations. The ministry is seeking comments and feedback pertaining to costs of any new equipment/IT purchases, training, recordkeeping, reporting, and other administrative activities required to comply with the regulation.
Further Information:
Proposal Number:
Posting Date:
February 21, 2018
Summary of Proposal:
The Health Sector Payment Transparency Act, 2017 (HSPTA) is new legislation intended to strengthen transparency about financial relationships that exist within Ontario's health care system and increase public trust and confidence.

Once proclaimed into force, HSPTA will require the medical industry, including pharmaceutical and medical device companies, to report annually to the Minister of Health and Long-Term Care all transfers of value (TOV) provided to certain categories of individuals and organizations involved in the health care sector.

Requiring pharmaceutical manufacturers, medical device companies and other prescribed payors to disclose information about their financial relationships with health care providers will better enable patients to make more informed decisions about their health care.

The Ministry of Health and Long-Term Care is proposing regulations that are necessary to support the implementation of the reporting scheme established under the Act. The proposed regulations would do the following:

-Specify the categories of individuals and organizations that will be "recipients" when they receive a transfer of value (TOV) either directly or indirectly from one of the payors listed in the Act;
-Further 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;
-Outline the process for requesting corrections of posted information.

The ministry is seeking feedback on this regulatory proposal. Draft regulations are included as part of this public consultation.
Contact Address:
8th Floor Hepburn Block,
80 Grosvenor Street,
Toronto Ontario
M7A 1R3
Effective Date:
January 1, 2019