Testimonials and Excerpted Articles Pertaining to

Dispensing Physicians

Dispense the Drugs you prescribe, Medical Economics

“Whether you have a lot of managed care or not, modern systems eliminate inventory management problems that once made drug dispensing an economic loser. "Because of computerization, in-office dispensing can make a lot of sense today." Gray Tuttle Jr., practice management consultant, Lansing, MI. Back to top

COMPLIANCE

“The only way that I can manage my formularies is by dispensing the drugs from my office.”

Dr. J. Wall, Norman, Ok.

“Richard D. Loew of Stuart, FL, writes multiple prescriptions for many of the 40-plus patients he sees every day in his walk-in clinic. That isn't unusual for an internist and emergency physician with a large Medicare practice. What is unusual is that he makes between $35,000 and $60,000 per year from selling medications to many of these patients. Using computer software, Loew earns a profit of $4 to $6 per prescription. His

in-office dispensary offers 70 percent of the drugs he prescribes, and accepts many of the same insurance cards that the pharmacy chains take.”

Dispense the Drugs you prescribe, Med Economics

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ETHICS

“Both the AMA and the American College of Physicians-American Society of Internal Medicine say:  It’s okay to dispense, but only if patients aren't exploited.” Dispense the Drugs you prescribe, Med Economics Back to top

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CASH FLOW

“Whichever dispensing system you use, you must make sure that the cash inflow from dispensing exceeds the cost of purchasing drugs. This isn't a problem for Azar Korbey in New Hampshire. Because drugs are reordered at the beginning of each month and don't have to be paid for until the end of the following month, he can afford to keep $25,000 of inventory on the shelf. "I turn over my inventory every four to six weeks. The drugs are paid for by the time I have to pay.”

“Generic drugs can be much cheaper in the office. For example, Korbey sells a month's supply of ranitidine for $20, less than half what it would cost in a drugstore. Margins on generic drugs are usually better than on brand-name medications, because many patients are willing to pay for them in cash. This is especially true if the co-payment on the generic drug at the pharmacy is more than the full cost of the same drug purchased in the office.” Dispense the drugs your prescribe, Medical Economics

“Lincoln Park Family Physicians sells mostly generics. Paid for in cash, they generate a profit of $7 to $8 per prescription, notes FP Steven H. Rube, compared with margins as low as $2 to $3 per script if claims are filed with health plans. While dispensary earnings go to the health system that owns Lincoln Park, prescription sales affect the doctors' bottom line via productivity bonuses, says Rube” Dispense the drugs you prescribe, Med Economics Back to top

CONVENIENCE

What I found is that patients absolutely love it! The convenience of one-stop shopping "has, without question, helped the practice." So says Dr. Iannini. Iannini also says he was initially concerned about how patients would respond to his dispensary, largely because everything he'd read suggested that the bill they left the office with—including the portion for drugs—would be perceived to be entirely for doctors' services.

One ancillary benefit of in-office dispensing is that it saves patients a trip to the pharmacy. Rube says, "Some well-off patients are willing to pay up to $50 out of pocket to fill their prescription in the office rather than make a $10 co-payment and wait for hours at the pharmacy," especially if they're sick and toting kids” DTDUP, Med Economics Back to top

CONFIDENTIALITY

Patients also consider confidentiality a "big plus" of an in-office dispensary, says Korbey. "They don't want everyone in the world to know they're on Prozac or Zoloft or taking something for constipation or herpes."

“The risk of drug theft is small, dispensing doctors say, because they don't stock controlled substances stronger than codeine-enhanced Tylenol and cough medicines, and because everything is kept in a lockable drug cabinet. Plus, we stock antibiotics and hypertension drugs—not big targets for break-ins." Automated inventory control makes even a single stolen bottle hard to miss.” Dispense the drugs you prescribe, Med Economics Back to top

LIABILITY

“Dispensing doctors say they're not exposing themselves to any additional malpractice liability. In fact, some expect their malpractice insurance premiums will eventually drop. "A few companies offer a premium cut of 3 to 5 percent if you have an electronic medical record," says Iannini. "I think that's on the horizon for in-office dispensing, too," because it provides electronic documentation of prescriptions.” Dispense the drugs you  prescribe, Med Economics Back to top

CONVINCED YET?