APMA News - June 2012 - (Page 36)

Small Business 101 From the American Academy of Podiatric Practice Management, the voice of practice management for the profession. By John Guiliana, DPM In-office Dispensing … Are You Still Reluctant? One of the fastest-growing trends in podiatric medicine is dispensing value-added products to patients. Early adopters of in-office dispensing will testify to the positive effect it has on patient convenience, compliance, and satisfaction. Reluctant adopters express some common concerns about the controversy: Professionalism: Physicians are classified as professionals; they give advice and make decisions from a selfless perspective. The patient seeks this advice because he or she feels the physician will put aside personal financial gain and treat the patient in the best manner possible. The sale of office-dispensed products tests this premise. The dispensing podiatrist may argue that the best product to improve the patient’s foot health is the one sold from his or her office. He or she may also contend that the opportunity to purchase such a product can enhance patient care, allowing the physician to offer a valuable service to patients. In addition, some proponents suggest that on-site purchases can save time and allow the patient to get a recommendation and product simultaneously, thereby enhancing convenience and compliance. The key to finding the truth in this controversy is to analyze the value of products, as well as the physician’s normal prescribing pattern prior to engaging in office dispensing. Once the physician engages in dispensing, significant changes in his or her prescribing pattern might rightfully be subject to scrutiny. The Price of In-ofﬁce Dispensed Products: Most manufacturers recommend physicians double the wholesale price to obtain the retail price. While this advice might seem aggressive to non-dispensing physicians, many are surprised to learn that pharmacies often use a similar pricing method. Dispensing physicians can often match or beat a pharmacy’s quoted price. The Physician as a Businessperson: Long gone are the days when a physician could be successful at his or her profession without regard to business matters. Placing the pure business of in-office dispensing aside (cost of goods, revenue production, profitability, etc.), dispensing strikes the very heart of another important business virtue—Total Quality Management. Many physicians who have successfully adapted to the fee restrictions and reductions of managed care also have realized they are likely better caregivers than ever before. They have evolved from the habit of treating merely the patient’s chief complaint to being keen observers of all of the patient’s current and potential foot-health issues. This new model of comprehensiveness lends itself well to dispensing value-added products. 36 APMA News June 2012 Many professional organizations, such as the American Academy of Podiatric Practice Management, have weighed in regarding the practice of in-office dispensing. While the wording and details vary from organization to organization, the basic spirit of the recommendations is to dispense only valueadded products and to preserve medical ethics. Other important guidelines are dictated by state and federal regulations. Prior to initiating an in-office dispensing program, a physician must perform legal due diligence. If you’re interested in incorporating an office dispensing program into your practice but aren’t sure you’re comfortable with the concept of “selling,” there are still ways to make it work. You can delegate the responsibility to a member of your staff or medical assistant. Regardless of the person responsible, the dispensing operation’s success is directly related to the level of physician commitment. Follow this general advice to initiate an in-office dispensing program: Select products that provide the best therapeutic value while maintaining a favorable price point. These products should generally be ones you recommend patients obtain in the local pharmacy. Three product categories are the basics for anyone who dispenses in the office: • • • Moisturizers and exfoliants Antifungals (creams, powders, solutions) Topical analgesics and antibiotics As your formulary expands, you can choose additional items from various lines on an individual basis. An adequate display case is one of the most important components of the dispensing operation. It’s the most effective way to market your office dispensing operation. A reception room display allows your patients to view your inventory and read promotional information. It’s important to familiarize all staff members with the products you carry. Even though, as the physician, you’re most likely to assume primary responsibility for recommending products, physician extenders will participate as well. Physician dispensing improves patients’ health while increasing a physician’s practice revenue. It creates higher compliance rates, which in turn improves outcomes and lowers overall health-care costs for patients and payers. n Contact Dr. Guiliana at Jguiliana@aappm.org.

Table of Contents for the Digital Edition of APMA News - June 2012

APMA News - June 2012
President’s Message
Contents
APMA Introduces REdRC
Legislative Scrapbook
APMA By the Decade
Profiles in Progress
2011 Podiatric Practice Survey
Reimbursement
Federal Advocacy Forum
List of Cosponsors to the Equity and Access for Podiatric Physicians Under Medicaid Act
APMAPAC Chair Report
IT Consultant
Website Wisdom
Technofile
Small Business 101
CPME Update
Pediatric Medical Assistans' Education Program
Annual Scientific Meeting Preliminary Program
Annual Scientific Meeting Sponsors
Annual Scientific Meeting Registration Form
APMA All Stars
In Short
Worthy of Note
Affiliates Corner
List of Affiliated Organizations
Insurance Advisor
New Members
Death Notices
APMAPAC Update
Development Update
Call for Third-party Comments
Classified Advertising
Dates to Remember
Advertising Index
Your APMA

APMA News - June 2012