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Physician dispensing – boy do we have a deal for you!

A friend who happens to be a practicing physician here in Connecticut was approached recently by physician dispensing firm Rx Development with a great offer. The physician could dispense medications right from his/her own office, at no cost and no obligation, and make buckets of money!
How much money?
Well, how about a 4443% markup on Soma’s generic?
Or 4330% on Mobic’s?
2060% on Ultram’s?
But wait. There’s more. The doc can pick her/his own drugs, negotiate for a bigger share of the margin, and Rx Development does all the work, provides all the drugs, handles all the billing, and trains the doc’s staff – all at NO CHARGE!
Of course, this only applies to work comp and auto accident patients.I guess increasing compliance, the avowed intent of physician dispensing, isn’t that important unless you can get paid huge dollars.

Oh well, one should do well if one is doing good! And if one can’t do well, what’s the point of doing good?
I’m hoping the State of Connecticut is aware of this, and takes prompt action to address this practice – which is nothing more than abusing the system to make outrageous profits at the expense of Connecticut’s employers. If you agree, please pass this on to the Connecticut Workers Compensation Commission Chair at
We have GOT to stop this.
Here’s the letter received by the physician.
“Dr. Jenson,
Thanks for taking the time to speak with me this morning. We work with Offices in your area that see workmans comp [sic] patients and assist them with almost every aspect of the visit. Here is some information regarding what we were discussing and what we offer. Also here is a link to the Website.
Our largest asset is In-Office Medication. What we do at Rx Development is store only the medications you would like in prepackaged (30,60,90,120 Count bottles) in a cabinet for your workman comp [sic] and auto accident patients. The medication is bar coded and electronically scanned through our web based dispensing system. There is absolutely no out of pocket cost to the Doctors or Patients. We handle everything for you: supplies, collections, set up and training, and tracking of inventory. Not only do your patients have the convenience of having their medical needs addressed in one location, you also capture the profit your [sic] passing onto local drugstores. [emphasis added]
We would love the opportunity to give you a free no obligation consultation to show you what makes us different and show you how easy and effective this really is!!
Here is more information from our Website:
Point-of-Care physician dispensing makes sense for both doctors and patients alike. From the convenience of having prescriptions on-site to the extra revenue doctors can easily generate, Rx Development offers unparalleled medication dispensing services that are above the rest.
In-office medication dispensing or point-of-care dispensing, gives physicians a greater success rate when it comes to managing the treatment process. While patients enjoy the convenience of having their medical needs addressed in one location, doctors achieve maximum medical improvement (MMI) for the injured, getting them back to work as soon as possible. Medication dispensing programs not only expedite Workers’ Compensation, personal injury, and automobile accident claims, but effortlessly yield supplemental revenue sources for the physicians.
· Obtaining Medications–It all begins with the convenience and availability of patient pharmaceuticals at your office. Rx Development will advance the amounts necessary to implement the program including medications that have been properly labeled and packaged in compliance with DEA and FDA regulations.
· Equipment and Supplies–Everything you need to properly dispense medication is at your fingertips. No out-of-pocket costs are necessary; all supplies are included as part of our management. This includes:
· Billing and Collections–Enjoy financial peace of mind while utilizing the Rx Development in-office medication dispensing program. A full suite of pharmaceutical A/R services is available so you don’t have to concern yourself with billing and collections. Rx Development advances the funds to purchase the medications and handles all insurance company reimbursements.
· Inventory Consulting–The Rx Development point-of-care dispensing program helps you maintain adequate inventory without incurring out-of-pocket costs.
· Comprehensive Training–Staff members will be completely trained in administering pharmaceuticals, accessing reports, processing patient requests, and more.
· Supplemental Income–Earn residuals as you provide a convenient service of dispensing pharmaceuticals to your patients without ever leaving your office.
· Industry Updates–Rx Development helps you stay abreast of current industry standards, as well as local, state, and federal regulations. Our knowledgeable advisors will keep your staff informed of the latest updates.”
I’m encouraging my friend to resist the temptation….

One thought on “Physician dispensing – boy do we have a deal for you!”

  1. Among the many problems and questions the letter raises: How does this program help achieve MMI more quickly??? There are several unsupported and untenable claims in the letter, but one claim is VERY clear: you can make a lot of money, Doc.

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Joe Paduda is the principal of Health Strategy Associates



A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.



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