Drug Dispensing by Physicians: Promoter's Claims Examined

Abstract

Experience in private pediatric practice is used to illustrate some potential advantages and disadvantages to patients and physicians of drug dispensing by physicians. Projections were based on the prescribing trends in the practice, the extent of patients' insurance reimbursement for prescriptions, the laws regarding dispensing, and the costs incurred when physicians purchase selected medications from a repackager or when patients procure them at a community pharmacy. Patients without insurance for prescriptions can potentially save money by purchasing medication at the physician's office but, in general, only if the physician's dispensing fee is minimal. Potential profits to physicians would be cut by an estimated 50% because of third-party enrollees choosing to have prescriptions filled at a pharmacy because of cost savings. Net profits are further reduced and may even be eliminated when the cost of physician and staff time to prepare, label, reorder, and maintain necessary records regarding dispensed medication are considered. Although it may be convenient for the patient to obtain initial supplies of medication at the time of an office visit, obtaining refills may be less convenient. The time and paperwork involved in dispensing by a physician cannot be considered as minimal interruptions in normal office procedure. The broad, attractive claims made in support of physician dispensing by physicians clearly overstate the benefits both to patients and to physicians.