Designated Manager is Not Just a Name on the Pharmacy Licence

Co-authors: Peter A. Saad,  Jayson Thomas, Vani Selvarajah & Gordon Chan.

 

Peter, Vani and Gordon have extensive experience across all commercial aspects of the pharmacy industry, while Jayson Thomas has extensive experience in pharmacy regulatory matters, including complaints and investigations.

 

 

Understanding the Risk for Pharmacists and Pharmacy Consolidators

“But it’s not my fault. I didn’t do it.” That may be a pharmacist’s first reaction when a problem was caused by someone else. For a Designated Manager, however, it may not be the end of the inquiry.

The consolidation of independent pharmacies has accelerated across Ontario. As pharmacy groups grow from a handful of locations into regional or provincial platforms, functions such as purchasing, payroll, human resources, technology, compliance and finance are increasingly centralized.

That centralization can create efficiencies. It can also obscure an important regulatory reality: each community pharmacy must still be managed by the pharmacist identified to the Ontario College of Pharmacists as its Designated Manager, or DM.

The DM designation is not an administrative formality. It carries meaningful management, oversight and compliance responsibilities. Yet in some multi-store organizations, the role is treated as little more than a name required for accreditation purposes.

A pharmacist may be appointed DM for several pharmacies while spending limited time at one or more of them. That is not automatically prohibited. The more important question is whether the pharmacist can genuinely manage each pharmacy for which the designation has been accepted.

Can I Meaningfully Manage and Oversee This Pharmacy?

If the answer is no, accepting the designation may create a serious mismatch between the responsibility assumed and the authority, information and operational control actually available.

What is a Designated Manager?

The starting point is the Drug and Pharmacies Regulation Act, or DPRA.

The pharmacy owner tells the College, in writing, who their designated manager is and this individual is defined as "the pharmacist responsible for managing the pharmacy." That language is deliberate. The DM is not simply the pharmacy’s liaison with the College. The statutory definition connects the designation directly to management of the pharmacy.[1]

Section 146 reinforces this distinction. Subject to the provisions governing remote dispensing locations, a pharmacy must be under the direct supervision of a pharmacist who is physically present and must be managed by the pharmacist designated by the owner as the DM. The section also requires every pharmacy owner to designate a DM and file notice of the designation with the College.[2]

The legislation therefore recognizes two related but distinct functions: direct professional supervision while the pharmacy is operating, and the broader, continuing management of the pharmacy.

A pharmacist working a particular shift remains responsible for their own professional conduct and for the professional activities they supervise. The DM carries an additional responsibility for the systems and operations through which the pharmacy delivers care. That distinction is particularly important in a multi-store organization.

The College’s Expectations Are Clear

The Ontario College of Pharmacists describes the DM as the registrant responsible for managing the pharmacy. Its guidance states that the DM accepts accountability and responsibility, together with the owner and corporate directors, for ensuring that the pharmacy conforms to the requirements governing pharmacy accreditation and operation.[3]

The College also states that the DM has authority and accountability over decisions affecting pharmacy operations and is responsible for effectively overseeing the pharmacy’s day-to-day management. Among other things, the DM is expected to establish systems for ongoing compliance, maintain applicable standards of operation, provide staff with regular guidance and access to specific pharmacy policies, and ensure that policies remain responsive to changes in the practice environment.[4]

The College’s Change of Designated Manager form identifies specific areas of accountability, including:

  • professional supervision of the pharmacy
  • facilities, equipment, supplies and drug information
  • record keeping and documentation
  • medication procurement and inventory management
  • training and orientation
  • safe medication practices
  • compliance with the Assurance and Improvement in Medication Safety program

The form also states that the College expects the DM to participate actively and effectively in the pharmacy’s day-to-day management and requires the pharmacist to acknowledge the responsibilities associated with section 166 of the DPRA.[5]

A pharmacist signing that form is therefore doing considerably more than consenting to the use of their name in connection with the pharmacy’s accreditation – they are accepting an operational management and oversight role.

Section 166: A Provision Every DM Should Read

Section 166 is one of the most important provisions for a prospective DM to understand.

In general terms, subsection 166(1) states that an owner or DM may be liable for an offence under the DPRA committed by a person employed by or under the supervision of the owner or DM, where the offence occurred with the owner’s or DM’s permission, consent or approval, whether express or implied.[6]

Subsection 166(2) addresses circumstances in which a person operates a pharmacy contrary to the DPRA or its regulations. In such a case, proceedings may be brought against the owner, the DM, either or both of them and, where applicable, a director of the corporation. Proceedings against one person do not preclude proceedings against another.[6]

Now, to be clear, Section 166 does not mean that a DM is automatically liable for every error or contravention committed by another pharmacist or employee. It does, however, make clear that the analysis may extend beyond the individual who performed the act.

Where an issue arises, relevant questions may include:

  • Did the pharmacy have an appropriate policy?
  • Was the employee properly trained?
  • Was adequate supervision provided?
  • Were recurring issues or warning signs identified?
  • Did staffing and workflow support safe practice?
  • Were suitable audits, reconciliations or controls in place?
  • What did the DM know?
  • What conduct, if any, did the DM permit, approve or implicitly accept?
  • What steps did the DM take after becoming aware of a concern?

These questions focus on the pharmacy’s management systems, not only the immediate conduct of the individual involved.

“But Another Pharmacist Did It”

Every pharmacist is independently responsible for their own professional conduct. A DM designation does not displace that responsibility. It also does not eliminate the DM’s separate obligations.

The College identifies responsibilities of the DM that include appropriate supervision of professional and non-professional staff, ensuring that controlled acts are performed only by authorized persons or under proper delegation, maintaining sound workflow processes and ensuring that staffing supports registrants in meeting applicable standards of practice.[7]

As a result, a regulatory inquiry may involve two different questions:

  1. Who performed the act?
  2. How was the pharmacy being managed, and did the DM discharge the responsibilities associated with that role?

The answers may involve different people, and various legal or professional considerations.

Acting as DM for Multiple Pharmacies

The College confirms that nothing prohibits a pharmacist from acting as DM at more than one community pharmacy. It also does not prescribe a minimum number of hours that a DM must work at a pharmacy nor a fixed limit on the length of the DM’s absence.[8]

These points are extremely important because they play a role in determining a DM’s level of accountability within a pharmacy but also subsequently give them the freedom to be in such a role without a requirement for physical presence 100% of the time. The College places the responsibility on the pharmacist to determine whether they can fulfill the obligations of the role at every pharmacy for which they are a DM. The DM remains responsible for the pharmacy’s overall day-to-day operation whether physically present or not.[9]

The practical difficulty increases as more pharmacies are assigned to the same person. A DM responsible for several locations should have satisfactory answers to questions such as:

  • How frequently do I attend each pharmacy?
  • Do I know the pharmacists, technicians and other staff?
  • Do I receive and review medication-incident and near-miss information?
  • Do I understand each pharmacy’s prescription volume, workflow and staffing model?
  • Do I review narcotic, controlled-drug and targeted-substance processes?
  • Can I determine whether policies operate in practice, rather than merely existing on paper?
  • Do I receive complaints, assessment findings and inventory discrepancies?
  • Can I require corrective action?
  • Is my oversight documented?

The analysis is functional, not numerical. There is no publicly stated maximum number of pharmacies for which one person can act as DM. The issue is whether that pharmacist can establish that each pharmacy is actively and effectively managed.

The Risk of the “Remote DM”

There is a significant difference between not working every shift and having little meaningful involvement in the pharmacy’s operation.

The DPRA distinguishes between a physically present pharmacist providing direct supervision and a DM acting as a manager. This distinction allows the DM to perform a broader management function without being present during every hour of operation, but it is important to note that it also does not reduce the DM role to a remote administrative designation.

A pharmacist should exercise caution when accepting a DM designation for a pharmacy where they:

  • Rarely attend
  • Have little interaction with staff
  • Do not receive meaningful operational information
  • Cannot review relevant records or incident data
  • Have no practical authority over staffing or workflow
  • Cannot require changes to unsafe practices
  • Are excluded from decisions made by head office or regional management

In these circumstances, the pharmacist may have accepted responsibility without obtaining the authority or visibility needed to discharge it.

Physical attendance is not the only measure of effective management. Depending on the pharmacy, oversight may also involve structured reporting, regular meetings, remote access to operational information, incident review, documented audits and clear escalation procedures. But remote tools must support actual management. They cannot substitute for it where the pharmacist remains disconnected from the pharmacy’s real operations.

Medication Safety and AIMS

The DM’s responsibilities also extend to the pharmacy’s medication-safety systems. The College identifies implementation of AIMS as part of the Standards of Operation that DMs are responsible for maintaining. The DM is expected to ensure that the pharmacy has functioning systems for medication-event reporting, review, learning and continuous quality improvement.[10]

Following a medication incident, the inquiry may therefore extend beyond the individual who made the immediate error. It may consider whether staffing or workload contributed, whether workflow created an avoidable risk, whether staff received appropriate training, whether earlier near misses revealed a recurring problem and whether corrective action was implemented.

The College is transitioning to updated AIMS requirements that take effect on January 1, 2027. During 2026, pharmacies must continue to meet the existing core requirements while preparing for the updated incident-management, continuous-quality-improvement and safety-assessment expectations.[11]

Consolidators should therefore ensure that AIMS information reaches the DM responsible for the pharmacy and is not retained exclusively within a corporate compliance function.

Controlled Substances and Record Keeping

The DPRA also assigns certain record-keeping obligations directly to the DM. Section 153 requires the DM to keep, or cause to be kept, prescribed records relating to pharmacy drug transactions. The precise requirements must be read together with the regulations and applicable federal controlled-substance legislation.[12]

This is another reason centralized compliance should not be treated as a substitute for store-level accountability. A central office may develop policies, operate inventory systems, conduct audits and support regulatory reporting. These systems can be extremely valuable, but they do not erase the statutory position of the pharmacist designated to manage the individual pharmacy.

The DM must have the ability, time and capacity to confirm with certainty that the systems are functioning properly at the location for which they are responsible.

The Consolidator’s Risk

This issue should matter as much to pharmacy consolidators as it does to individual pharmacists. Growing pharmacy groups commonly standardize policies, centralize purchasing and finance, appoint regional operators and monitor performance through technology – all of which are structures that can improve consistency and efficiency.

However, risk arises when the person identified to the College as managing the pharmacy is not the person who actually controls its operation.

In this model:

  • The DM may carry responsibility without meaningful authority
  • An operational manager may exercise authority without professional accountability
  • The owner may assume that regulatory compliance has been delegated to the DM
  • The DM may assume that head office is responsible because it created the policies
  • Local staff may be uncertain about who has final authority over patient-safety concerns

When an incident occurs, these assumptions may be difficult to reconcile with the pharmacy’s formal regulatory structure.

A Better Governance Model for Pharmacy Groups

A consolidator should treat the DM function as part of its governance and compliance architecture, not simply as an accreditation requirement. At a minimum, the organization should consider whether:

  1. Each DM has sufficient authority to fulfill the role
  2. The number and complexity of assigned locations permit meaningful oversight
  3. The DM has regular operational engagement with each pharmacy
  4. Responsibilities among the DM, regional personnel and corporate management are documented
  5. Reporting and escalation procedures are clear
  6. Medication incidents, near misses, staffing concerns, assessment findings and inventory discrepancies are reported to the DM
  7. The DM can require corrective action where staffing or workflow threatens safe patient care
  8. Pharmacy audits and follow-up measures are documented
  9. The DM’s own oversight activities are documented
  10. The DM has access to the records and systems needed to discharge the role
  11. Compensation structures and performance expectations do not improperly interfere with professional judgment

Documentation is particularly important. An organizational chart or policy manual may describe formal authority, but it does not establish effective oversight. Meeting records, incident reviews, audit reports, action plans, training records, escalation communications and follow-up documentation must be used in order to provide more meaningful evidence of active management.

Questions Pharmacists Should Ask Before Accepting

A pharmacist should not accept a DM designation without understanding the pharmacy they are being asked to manage. Before agreeing, the pharmacist should consider:

  1. The pharmacy’s staffing and operating model
  2. Prescription volume and workflow
  3. Prior College assessments and outstanding concerns
  4. Medication-incident history and AIMS processes
  5. Controlled-substance inventory and reconciliation practices
  6. Existing policies and whether staff members follow them
  7. The pharmacist’s access to records and reporting systems
  8. The authority to direct staff and change unsafe practices
  9. The role of regional or corporate management
  10. The time and resources available to perform the function properly

If the pharmacist cannot obtain necessary information, access relevant records, address unsafe practices or exercise meaningful authority, they should think twice about accepting or continuing the role.

The College’s expectations attach to what the DM actually does, not simply to the designation appearing on the public register.

The Takeaway

The title “Designated Manager” may sound administrative. It is not.

The DPRA defines the DM as the pharmacist responsible for managing the pharmacy. Section 146 requires a pharmacy to be managed by its DM. Section 153 addresses records the DM must keep or cause to be kept. Section 166 recognizes potential responsibility of owners and DMs for certain contraventions occurring in pharmacy operations.

The College’s materials reinforce the same point: the DM is expected to exercise authority and accountability over operational decisions and to participate actively and effectively in day-to-day management.

For consolidators: Do not build a pharmacy platform in which the DM exists primarily on paper.

For pharmacists: Do not accept responsibility for a pharmacy you do not have the information, authority and practical ability to manage.

Always remember, another pharmacist or employee may commit an act that attracts regulatory attention. That person remains responsible for their own conduct. Their involvement, however, does not necessarily end the inquiry into the pharmacy’s systems, supervision, training, workflow and management.

A DM designation should never be treated as a favour to an owner, an administrative convenience for a consolidator or simply another title attached to a pharmacist’s registration. On the contrary, it is a regulatory responsibility that must be accepted, structured and documented accordingly.

This article is intended for general informational purposes only and does not constitute legal advice. The application of the DPRA, its regulations and the standards and policies of the Ontario College of Pharmacists will depend on the particular facts, including the pharmacy’s operations, the authority and involvement of the DM, and the conduct under review.

References

[1] Drug and Pharmacies Regulation Act, R.S.O. 1990, c. H.4, s. 1, definition of “designated manager”, https://www.ontario.ca/laws/statute/90h04.

[2] Drug and Pharmacies Regulation Act, R.S.O. 1990, c. H.4, s. 146, https://www.ontario.ca/laws/statute/90h04.

[3] Ontario College of Pharmacists, “Designated Managers Practice Topic”, https://ocpinfo.com/practice_topic/designated-managers.

[4] Ontario College of Pharmacists, “Designated Managers Practice Topic”, under “Key responsibilities”, https://ocpinfo.com/practice_topic/designated-managers.

[5] Ontario College of Pharmacists, Change of Designated Manager (DM) Form for Community Pharmacies (May 2025), https://ocpinfo.com/wp-content/uploads/2025/05/Change-of-Designated-Manager.pdf.

[6] Drug and Pharmacies Regulation Act, R.S.O. 1990, c. H.4, s. 166, https://www.ontario.ca/laws/statute/90h04.

[7] Ontario College of Pharmacists, “Designated Managers Practice Topic”, under the discussion of responsibilities beyond those of staff pharmacists and pharmacy technicians, https://ocpinfo.com/practice_topic/designated-managers.

[8] Ontario College of Pharmacists, “Designated Managers Practice Topic”, FAQs concerning minimum working hours and acting as DM at more than one community pharmacy, https://ocpinfo.com/practice_topic/designated-managers.

[9] Ontario College of Pharmacists, “Designated Managers Practice Topic”, FAQ concerning minimum working hours and absences, https://ocpinfo.com/practice_topic/designated-managers.

[10] Ontario College of Pharmacists, “Designated Managers Practice Topic”, discussion of the Standards of Operation and AIMS, https://ocpinfo.com/practice_topic/designated-managers.

[11] Ontario College of Pharmacists, “AIMS Checklist for Designated Managers”, noting updated requirements effective January 1, 2027 and transition expectations during 2026, https://ocpinfo.com/ocp-resources/checklist-for-designated-managers-to-ensure-aims-program-compliance.

[12] Drug and Pharmacies Regulation Act, R.S.O. 1990, c. H.4, s. 153, https://www.ontario.ca/laws/statute/90h04.