The total cost was calculated as the sum of the average dispensing cost
(from PharmaCare and ODB in 2012) and the calculated product cost.
The OIG report goes on to say, "The dispensing cost
information clarifies that our analysis did not account for all of the costs associated with dispensing prescription drugs." A recent study conducted by the accounting firm Grant Thornton found that the average cost to dispense a prescription drug is $10.50, whereas the OIG report indicates the average dispensing fee paid to pharmacies in Medicare Part D is $2.27.
Patients and physicians would benefit from the use of an alternative whose cost would be near dispensing cost
The authors noted higher dispensing costs
in professional, independent, and clinic pharmacies than in other settings, a positive correlation between dispensing costs
and prescription prices, and a negative correlation between dispensing cost
and prescription volume.
"OIG makes this important point in the report, noting that the dispensing cost
information clarifies that our analysis did not account for all of the costs associated with dispensing prescription drugs.
For example, under current standards the total cost to a pharmacy for a prescribed brand-name drug that costs $107.62 (using AWP) with an averaging dispensing cost
of $9.62 would be $117.24.
In order to remain competitive, pharmacies must double their prescription volume within five years without increasing dispensing cost
States may adopt tiered professional dispensing fees based on the effort involved in the dispense, and have the flexibility to create multiple classes of dispensing costs
as justified in their state plans.
ScriptPro automation can help lower dispensing costs
. As a retail pharmacy, the two things that have little variance from the market as a whole will be the product, which is from a wholesale drug contract negotiated every three to five years, and the insurance contracts that come up annually.
NHS figures say the average net cost of a single prescription of Champix - not including discounts, fees or dispensing costs
- was PS34 in 2013/14.
Now, more than ever, pharmacies are trying to lower their dispensing costs
and streamline their workflow in order to increase profits and handle a growing prescription volume.
Kerr said: "The Executive policy remains that it is right that patients who can afford to should continue to contribute towards NHS dispensing costs