newsletter highlighting veterinary issues for
April 14, 2004 Volume 1, Number 9
In This Issue
· Rabies Vaccine Recall
· Illinois Department of Revenue Audits of Veterinary Practices
· ISMVA Member Survey
· Governor Proposes License Fee Increases
Category of Links
Recall on Human Rabies Vaccine
Aventis Pasteur has recalled four lots of IMOVAX rabies vaccine because of a potential public health threat. During a recent quality assurance test of the inactivated viral vaccine, the manufacturer detected the presence of live Pitman-Moore virus in a single lot. The contaminated lot was not distributed, but as a precautionary measure, four lots produced concurrently were recalled. Those lots were distributed in the United States from Sept. 23, 2003, to April 2, 2004, and were numbered X0667-2, X0667-3, W1419-2, and W1419-3. Additional lots were distributed internationally, and the manufacturer is working with regulatory authorities to trace those lots.
According to the national Centers for Disease Control and Prevention, the recalled lots passed all Food and Drug Administration-approved release tests, including testing to confirm the absence of live virus: "These test results suggest that any potential risk to those vaccinated with recalled vaccine is likely to be low." No unusual adverse events associated with the recalled vaccine have been reported.
Health care providers should contact persons who received recalled vaccine and implement the precautionary treatment recommended by the manufacturer. The treatment is outlined on the CDC's Web site, www.cdc.gov/mmwr/preview/mmwrhtml/mm53d402a1.htm. Individuals who have received rabies vaccine between Sept. 23, 2003, and April 2, 2004, should contact their health care providers to determine whether they were exposed to recalled vaccine. If necessary, the health care providers will begin treatment. Vaccine distributors and health care providers who have doses of the recalled lots should contact Aventis Pasteur about disposing of them. For information about the recall, call (800) 835-3587, or visit www.vaccineshoppe.com.
The Illinois Department of Public Health recently asked ISVMA to distribute a memorandum regarding the recall of human rabies vaccine and recommendations for those that received the recalled vaccine. Please click on the following link to open up a copy of the memorandum (you must have Adobe Acrobat Reader installed.
The ISVMA offices continue to be informed of developing audit practices that have profound impacts on veterinary practices. The ISVMA was recently contacted by a clinic that was told by their auditor that veterinary clinics and hospitals had to pay the difference between the Service Occupation Tax (SOT) rate they were paying their suppliers and their local SOT rate. For instance, if your local SOT is 7.50% and your supplier is charging an SOT rate of 6.50%, you would owe the DOR the 1% difference. The practice owner contacted ISVMA for assistance and we were able to work through a tax attorney (retired counsel at the DOR) who contacted the auditor and suggested the practice owner should also get a credit for taxes he paid to suppliers where the SOT rate was higher than his local rate. It appears that credit will be applied in this case.
Note: if your supplier is charging a higher SOT than your local rate, you should request a credit be applied.
It has also come to our attention that some auditors are trying to apply taxes to certain services. For instance, if you purchase a vaccine for $5 and then charge $20 to administer the vaccine, you could open yourself to tax liability if your invoice sets a separately stated selling price for the product being transferred PLUS the cost ofproviding the service. In other words, if you administer the $5 vaccine don’t prepare an invoice that reads, “Vaccination - $20.” It could be interpreted that you charged $20 for a $5 product and the auditor could interpret that you owe sales tax on the difference. It would be more accurate to prepare an invoice that stated the cost of the vaccine at $5 and the cost of administering the vaccination at $15.
Please Fill Out Your Survey!
The current issue of the Epitome includes a one-page survey and a member application form. We encourage everyone to fill out the survey and return it to the ISVMA office. The ISVMA Board of Directors will use the results of the survey to construct a strategic agenda for the membership. If you are already a member, don’t throw away the application form! Find someone in your practice or a neighboring practice that isn’t a member and encourage them to participate in their state association!
The Epitome has been mailed to all members and member prospects.
Recently, Governor Rod Blagojevich proposed 200
new fee increases that he has included in the Fiscal Year 2005 budget to
generate approximately $57 million in new revenue for the State of
The Illinois Senate Republicans are seeking input from the veterinary profession to determine how certain fee increases will impact on the profession. They have set up a special Internet site where practices can offer feedback on these tax and fee increases. To respond via the Internet, go to www.senategop.state.il.us and click on "Governor Blagojevich's fee increases." Alternatively, you can call to provide feedback at (217) 782-7730.
The fees increases that will impact the veterinary profession are: