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Recent Ohio Board of Pharmacy Guidance for MedSpas and IV Therapy Clinics

Client Alert

Compliance is vital when operating a MedSpa that holds a Terminal Distributor of Dangerous Drugs (“TDDD”) license or an IV Therapy Clinic. The Ohio Board of Pharmacy (“BOP”) regularly conducts inspections to confirm compliance, and has recently released guidance regarding MedSpas, IV Therapy Clinics, and TDDD licenses. Understanding BOP guidance and implementing appropriate changes can help ensure that your practice is ready for a potential BOP inspection. The following gives insight into the recent BOP guidance.

GLP-1 Guidance:

  • Currently, compounding copies of Tirzepatide and Semaglutide is prohibited.  
  • Retatrutide and Cagrilintide are not permitted to be used in compounding and are not components of any FDA-approved drugs. The BOP states that “all inventory containing Retatrutide or Cagrilintide must be disposed of immediately.”  
  • If a drug is commercially available, it cannot be copied through compounding. There is an exception if the drug is not commercially available, or if the compounded drug “includes a change, made for an identified individual patient, which produces for that patient a significant difference, as determined by the prescribing practitioner, between the compounded drug and the commercially available product.” The asserted change must be sufficiently documented on the prescription or order.

Compounded Drug Guidance:

  • Prescribers must inspect and approve the compounding process.
  • Using protocols or standing orders for the recommendation, compounding, and administration of IV medication is not authorized.
  • Compounded drug preparation must be appropriately labeled, and should list patient identification information, the name and quantity of each ingredient, the date and time prepared, the beyond use date, and the name and initials of the person who prepared the compounded drug preparation.
  • Compounded drug preparation that is not used by the beyond use date cannot be administered to patients and must be appropriately disposed.
  • Needles used for compounding should never be used for patient administration.

TDDD License Guidance:  

  • In general, practices engaged in drug compounding are required to have a valid and current TDDD license.
  • Before purchasing dangerous drugs, a terminal distributor must verify that a drug wholesaler is licensed to engage in the sale of dangerous drugs in accordance with ORC 4729.52, or that the seller is licensed to engage in the occasional sale or distribution of dangerous drugs at wholesale in accordance with OAC Rule 4729:5-3-09.  
  • Any change in the ownership, business or trade name, category, or address of a TDDD requires a new application, required fee, and license. The new application and required fee must be submitted within thirty days of any change in the ownership, business or trade name, category, or address.
  • Records of dangerous drug administration must be maintained for at least three years from the date of last administration.   
  • Controlled substances must be stored in a securely locked, substantially constructed cabinet or safe. The cabinet or safe cannot be in an area readily accessible to the public, must remain locked and secured when not in use, and must be stored in an area with a physical barrier and suitable locks during non-business hours. The method of accessing the cabinet or safe should prevent unauthorized access.  

To learn more about MedSpa, IV Therapy Clinic, and TDDD license compliance, please contact BMD Member Jeana Singleton at jmsingleton@bmdllc.com or 330-253-2001.


Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.