Physician Dispensing: Top Things To Know When You Get Started

If you have ever thought about setting up physician dispensing (a.k.a. in-house pharmaceutical services), you are not alone. The trend to add physician dispensing is making waves in group practices that specialize in oncology, surgery and orthopedics (and multi-specialty). Even smaller practices are taking notice and trying to become a one-stop shop for their patients. No matter the size of your practice or specialty, there’s an opportunity to join in the physician dispensing trend. 

Why are practices utilizing physician dispensing?

There are many reasons that practices are opting for an in-house pharmacy. Some big reasons include:

• Convenience. Your patients will have one less stop to make when they get a prescription. This is especially helpful for the elderly or other patients that have a hard time lining up transportation. 
• Continued care. Patients no will no longer have any down time between treatments. They will have the potential to leave your office with all the supplies and medications they need without skipping a beat. 
• Revenue. Of course, it has to be profitable. When done correctly,  physician dispensing can ultimately improve your bottom line. There are reports of an increase of 10-15% in practice revenue. That’s a great increase in profit.
  

What are the dangers of utilizing physician dispensing?

Of course, there are precautions to take into consideration before you go running to open shop. Keep these points in mind when offering in-house pharmaceutical services (these are also great training tools for staff):

• Insurance. Some insurance companies will have restrictions on where medicine can be filled. 
• Carrying liability insurance. Payers may require your practice to carry additional liability insurance. 
• Cost. For some medications, it might not be profitable to carry them on-hand. Brand-name drugs can be particularly pricey, especially oncology medications. 
• All aboard! All physicians must be on-board and consent to your in-house pharmacy. One sour apple can ruin it for your practice. 
• Attorney up. You WILL need an attorney to get your pharmacy up and running. Each state has different requirements and it is best to consult with an attorney to ensure you have the proper paperwork. You want to follow the rules to a T here. 

How do I get started with physician dispensing?

Before you get started opening an in-house pharmacy, you must weigh the pros and cons for your specific practice. Will every doctor be on board? Will your practice be able to profit? Will your patients appreciate the convenience? These are very important questions to ask about your practice.
Among those questions, consider these as well:

• Will your get repeat customers? When performing physician dispensing correctly, you will have a base of repeat customers. This is essential for the success of your operation. 
• Will your staff encourage this new service? Your staff needs to be onboard with the pharmacy. With proper training and motivation, they can have a vital role in the success of the pharmacy. 
• Do you have the staff to power this new service? Whether you have the staff currently or you need to hire more, this will also be important to how the pharmacy will run. If you do not have the ability to staff it properly, you will be in grave danger. 
• Get in touch with your lawyer. Once you are sure you want to move forward with physician dispensing, you will then want to get a lawyer for the intricacies of the paperwork. 
• Determine which medications are appropriate to dispense. This can be vastly different from practice to practice. It will obviously correlate to your specialty and your ability to be properly reimbursed by the payers. 
• Get contracts. The payers you are working with will need contracts and the requirement for reimbursement.
• Hire the staff. If you do not have a pharmacist on deck, now is the time to start interviewing. 

Bottom Line

Setting up physician dispensing in your practice is no easy task. It will take time, research and working with a seasoned lawyer. You must carefully decide what your pharmacy will carry and how it will run. The benefits can however be astounding. Your patients will have the convenience of a one-stop shop and you will see increased revenue when the pharmacy is run correctly.