The Economics of Prescription Dispensing Systems

Pinney sees the market becoming first more regionalized, then taking off around the country within a couple of years. “I think 2010 is where you’ll walk into pharmacies and see it become pretty common,” Pinney said.

She also feels that her company, along with InstyMeds and MedVantix, can each have their fair share of the market, without stepping on each others’ toes. “There’s role for all of it," she said.

“The big message (is that) we’ve got a lot of prescriptions to get out to a lot of people in a variety of different ways — finished, partially finished, unfinished, remote areas, high urban areas,” she added. “We’ve got all these places where we have to make prescriptions available and I think that all these technologies are going to make that happen.”

Q&A with Andrew Shea of Essence Corp.

There is a wide variety of companies that offer medication dispensing without the use of a vending machine, including market stalwarts Essence Corp., VantageRx, Physicians Total Care and Allscripts Healthcare Solutions. ICS asked Andrew Shea, director of marketing and communication at Essence Corp. to discuss dispensing, including the Essence DRx program, and its role in urgent care facilities.

Tell us about the DRx medication dispensing program and options available for urgent care facilities.

In-office medication dispensing is the process of distributing pre-packaged medications directly to patients at the point of care, saving a trip to the pharmacy and allowing an individual to immediately begin treatment. Physicians who dispense in the urgent care practice typically stock a limited number of their most commonly prescribed generic medication and supply them to their patients for a modest fee. DRx has supplied these medications to urgent care centers for more than 20 years. All medications are delivered to the practice pre-counted, pre-packaged and ready to dispense to patients.

Urgent care centers can choose from one of three safe and efficient dispensing options:

DRx BASIC is a quick, easy-to-use sticker and log based system. This option is ideal for smaller urgent care practices, or those seeking a no-obligation opportunity to test the concept in their clinic. There are no contracts, no minimum orders and no special equipment required.

DRx DESKTOP is a comprehensive dispensing system that includes easy-to-use dispensing software, laptop computer, barcode scanner, label printer and laser printer for printing receipts and patient education materials. All software and computer equipment are provided free to practices meeting a modest medication order volume.

DRx ADVANCES is a secure Web-based system ideal for larger urgent care practices. This efficient option includes one-click reporting and inventory management capabilities, and can be operated using a standard Internet browser.

How does this program help patients and staff?

Today’s most progressive urgent care centers are dispensing prescription medications at the point of care to increase income and improve the patient experience. The DRx medication dispensing program saves patients time while enhancing urgent care practices. Everyone wins.

For patients, the benefits of point-of-care medication dispensing are especially significant. Both anecdotal and scientific evidence finds people who are ill, in pain, accompanied with young children or the elderly, or just plain busy, appreciate the convenience that comes from receiving their medications in the urgent care center. Individuals without health insurance — most recently estimated at 47 million Americans — can also save significant amounts of money when generic pharmaceuticals are dispensed at the point of care. In 2006, the average retail price of a generic prescription drug was $32.32, considerably more expensive than the average in-office selling price, which varies by practice but typically falls in the $8 to $15 range.

How does your program handle insurance and co-pays?

The DRx program, like most medication dispensing programs, employs a “cash-and-carry” model, meaning the need to file an insurance claim is eliminated. Instead, patients make payment directly to the urgent care center. These payments may be financed through a patient’s flexible healthcare spending or health savings account, but are not typically reimbursed by pharmacy benefit managers.

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