The Economics of Prescription Dispensing Systems

It’s late at night. A patient visits an urgent care facility and gets a prescription for medication. Easy enough, but how does the patient get their medicine if pharmacies are closed and the patient doesn’t have time to wait in line the next morning before commuting to work, school, their child’s daycare, etc.? Everyone seems busy these days, and convenience is what patients want.

One option that has come to the forefront is prescription dispensing machines. At first glance, they appear to be an ATM, but they don’t offer cash, they offer an expedient way for patients to pick up medication.

“Everybody is time-starved,” said Brad Schraut, CEO and president of InstyMeds. InstyMeds, along with competitors Asteres and MedVantix, form the bulk of the industry’s distributors. “Many studies have been done that patients want their medications at the point of care,” Schraut said. “It’s estimated that as much as 40 percent of all prescriptions in the United States will be physician dispensed by 2010.”

When St. Anthony’s Medical Center installed InstyMeds’ automated dispensing machines at its three urgent care centers in the St. Louis area in September, the move drew pleasant reviews from physicians and patients. The physicians, however, do want some minor changes made so that the machines are easier for them to use. “We’re very pleased,” said Mike Anderson, director of the St. Anthony’s urgent care centers. “The patients who have used it really like it a lot.

“For us, first and foremost, it’s a convenience for the patient,” Anderson said. “It makes us more of a one-stop shop. They can come in here for treatment, fill their prescriptions and go home.”

These machines aren’t just becoming common at urgent care facilities. The Asteres Script Center vending machine is available in West Coast retail pharmacies. “We integrate with the retail pharmacy management system,” said Linda Pinney, founder and chief business officer of Asteres, which has machines at stores such as Longs Drugs, Safeway, Giant and Rite-Aid.

How it Works

The machines require that physicians create prescriptions electronically and that the prescriptions be sent to the vending location. From there, patients enter pertinent information on a touch-screen monitor, and insert either cash or a credit card to cover co-pays and medication costs. A short time after, patients receive their medication, and some even take their initial treatment right in the office.

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