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Drug Pricing

Discussion in 'Pharmacy' started by Rxman, May 7, 2007.

  1. Rxman

    Rxman 2+ Year Member

    23
    0
    Feb 4, 2007
    Folks,

    Need your insights on mechanism adopted to price prescription drugs by retail pharmacies. Also, how do pharmacies arrive at dispensing fee?
     
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  3. sdn1977

    sdn1977 Senior Member 10+ Year Member

    3,548
    18
    Jul 28, 2005
    Oh gosh - this is not a simple answer.....

    I don't have time to get into AWP, AMP, contract agreements, etc....but....when I get more time, I'll get back.
     
  4. Old Timer

    Old Timer SDN Advisor SDN Advisor 10+ Year Member

    3,992
    985
    May 16, 2007
    There is not enough time or space to lay this all out for you. It basically comes down to this:

    They make the prices (for cash customers) or sign contracts for reimbursement (for insurance customers) that allow them to make a high enough profit to stay in business.

    I learned along time ago,
    Profit is your most important product.
    If you fail to make a sufficient profit, you will not be able to provide the services to your patients you want provide. You went to school to help people and if you or your pharmacy or pharmacy department does not make enough money to cover your costs, you get to help nobody.....
     

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