The Latest Additions of Physician Dispensing System
Though there is enough evidence that physician dispensing in workers' compensation causes longer impairment, higher medical costs, and higher indemnity costs, the practice continues to grow.
Why this is tough? The reason is - WC drug fee were depending on AWP, and repackagers can set own AWP, stuffing a few pills into a bottle, dispensing to an unwitting applicant, and pocketing the several hundred dollars was child's play back in the day.
As a result, many states enacted legislation or implemented regulations to eliminate the repackaged medicine upcharge by reimbursing based on the non-repackaged drug.
The dispensing industry has adapted by locating and purchasing drugs from "contract" manufacturers, or drug companies that "manufactured" their own drugs and thus had the ability to set their own AWP. Not a surprise, the prices are higher than other comparable drugs by mainstream manufacturers. But the payers has no choice other than paying the high cost.
Additional Revenue
The average doctor sees 25 patients per day and writes 1.4 prescriptions per visit, according to the National Center for Health Statistics. If the practice made $10 for each of the 35 prescriptions, daily earnings will rise by $350 without taking up any more of the doctor's time.
To boost revenue streams, doctors are now performing more internal services such as lab tests, x-rays, and electrocardiograms. Why shouldn't they have workplace dispensaries as part of their practice?
The pattern is being followed by a number of nations. An Arkansas circuit judge recently made a decision that would make it easier for doctors to sell drugs in the state. Patients should be able to choose where they get their drugs, according to supporters.
Private equity companies are investing in the industry, and government advocacy for dispensaries is in full swing. Doctor-dispensed drugs have become so lucrative that private equity firms are investing in the business.
Affordability
Providing patients with prescriptions at the point-of-care adds a certain degree of flexibility not available in the conventional doctor/pharmacy partnership which can augment patient satisfaction.
Some say transportation is a major issue. Patients on Medicaid or the elderly typically have to arrange transportation to their physician’s office, which also makes transport to the pharmacy much more difficult. In these situations, receiving both services at the same place will remove the hassle.
Treatment that is less dangerous
In certain cases, drugs prescribed by a doctor may improve patient safety. In worker's compensation situations, the procedure may be so bureaucratic and complex that an injured person will have to wait days for needed medicine.
Over-prescribing issues can also be alleviated by in-practice pharmacies. According to a new survey, more than one out of every 100 discontinued prescriptions was still filled by a pharmacy. For more information regarding physician dispensing system, see us at PD-RX Pharmaceuticals in OKC.
**Disclaimer: The information on this page is not intended to be a doctor's advice, nor does it create any form of patient-doctor relationship.