In-Office Dispensing of Prescriptions
By: SUZANNE BOYD
Adding Increased Customer Service & Revenue to Your Practice
From patient convenience to increased practice profits to lower medication costs and even improved accuracy and compliance benefits, adding in-office medication dispensing can enhance your practice. Although physician dispensing is a convenience for the patient and can be a major ancillary profit center, it does require planning, investment, space, inventory and staff that are trained to handle transactions and educate patients about their medications.
In terms of benefits to the patient, convenience is at the top of the list. In-house dispensing of prescriptions is bringing the retail trend of one-stop shopping into the medical office. Patients can leave the office with their prescriptions in hand, eliminating an extra stop at the pharmacy. It also can enhance a patient's sense of privacy when receiving a medication the patient considers embarrassing. The increased level of care provided when in-house dispensing is offered can also cultivate a more caring and compassionate relationship with patients.
"In-house dispensing can actually save patients money on their prescriptions as the physician's office benefits from the collective bargaining power the vendor has in negotiating prices for medications," said Dennis Wozniak, area sales executive with Physicians' Pharmaceutical Corporation. "The patient also can pay cash or use his or her insurance cards the same as at the pharmacy. Our program also encourages the use of generics when appropriate, thereby offering further cost savings through lower co-payments or a lower overall cost for the drug prescribed."
For physicians, the benefits of having in-house dispensing can outweigh the minimal start-up and ongoing costs of the program, Wozniak said. Besides the patient satisfaction benefit, it can improve medication tracking and enhance medication compliance, he added. "Prescription non-compliance can lead to increased hospital visits, especially for patients taking three or more medications. Furthermore, the statistics indicate that more than 30 percent of prescriptions are never filled. With in-house dispensing, you can track patient's prescriptions as well as be assured the patient received the medication."
In-house dispensing can result in an almost immediate increase in profits through the revenue generated by the additional ancillary service, Wozniak explained, adding that it also saves the practice money by significantly reducing the amount of time spent on pharmacy callbacks. "A 1999 Institute of Medicine study estimated that each pharmacy call-back cost a practice five to seven dollars. If the physician averages 30 prescriptions a day, as well as refill requests, the dollars add up quickly."
Establishing an in-house dispensing program involves more than dedicating space. It requires equipment, software, personnel, insurance and licensing paperwork, in addition to estimating inventory and establishing the system workflow. Many of the vendor programs include assistance with these. Tennessee requires no additional licensing or registration because physicians are licensed and insured to dispense medications.
"Most of the time not much space or inventory is required to provide this service as many practices carry about a one month supply of the most common prescriptions they write," said Wozniak. "It does require a dedicated employee to handle dispensing the medications as it is not a free time job. From answering questions to filling anywhere from 60-80 prescriptions a day to adjudicating claims electronically, we recommend there be a dedicated pharmacy tech in place to be successful."
One of the easiest ways to launch an in-office dispensary is to contract with a commercial distributor such as Physicians' Pharmaceutical Corporation, Physicians Total Care, Allscripts Healthcare Solutions or DRx. Although these vendors vary in the manner in which they provide the program and services offered, most supply prepackaged or repackaged drugs, replenish inventory, have software systems that record patients' prescriptions and process insurance claims.
"We use a turn-key system that allows a practice to dispense prescriptions in-house, which creates an additional revenue stream, maintains patient privacy, is convenient for the patient and enhances medication compliance," said Wozniak. "We work with our clients to ensure the program is profitable and easy for the practice and the physicians to use."
"In-house dispensing is ideal for a practice that is writing a minimum of 25-35 prescriptions per day," said Wozniak. "And there are certain specialties that are better suited for it, such as pediatrics, obstetrics/gynecology, pain management and urology. General practice physicians also are good candidates due to the wide latitude of medications they prescribe. Overall, it is an outstanding means to increase practice profits while capitalizing on improving patient care."
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