Physician Dispensing – Economics I

One of the major drivers for doctors considering dispensing pharmaceuticals from their clinics is the potential revenue.  There are many patient benefits but this post will focus on the economic impact to a medical clinic.

First of all, the facts.  The U.S. Bureau of Labor Statistics shows about 633,000 working doctors in the United States.  About half of them work in physician offices and 15% of them are self-employed.  Of all working physicians, about 40% are general practice and the average general practice physician earns about $156,000 per year.

With reimbursements dropping (Medicare reimbursement drops 5%), all types of physicians are forced to look for creative ways to cut costs (ex: reduce the price of medical supplies) as well as increase revenues.  Enter physician dispensing.  Medication dispensing involves offering prepackaged pharmaceuticals to patients before they leave the office.  It is estimated that just under 10,000 physicians dispense from their practices.  One study shows that general practice physicians see just under 20 patients per day.  General practice docs are seeing a variety of conditions and many of them require a prescription.

My next post will focus on discussing the numbers and economic impact of pharmaceutical dispensing.

Schedule a free claims analysis now.

Let’s Talk now


Betsy Bigler | Mar 7th, 2024
INDIANAPOLIS, March 7, 2024 – Northwind has announced the addition of Tony Purkey as Senior Vice President, Client Strategies. “Demand from our self-funded employer and union clients is driving rapid growth,” said Phillip Berry, CEO. “Tony Purkey joins Northwind at a time when we need high-integrity leaders with expert knowledge in employer-sponsored health and the … more »

continue reading

Voices Lost in the Noise

Phillip Berry | Jan 31st, 2024
In the health benefits world, the mad scramble toward January renewals/starts has subsided and attention has turned to the annual cycle of review necessary to gauge progress. How did we do? The plan review process generally centers on analytics to gauge progress or regress and to identify “areas of opportunity.” Good. The right data with … more »

continue reading