- Joined
- Feb 24, 2003
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Alright, so I've thought about the economics of drug distribution for a while and I'm still baffled by some things. Perhaps someone can enlighten me or at least suggest a reading source. I think these economic considerations may be a good indicator about the future need and shortage of pharmacists in this country.
1) I know from a brief stint in retail that there is some kind of general deal that has been worked out with the drug manufacturers regarding their cut of every prescription that is filled. I have seen the term AWP- 18% + $1 but still don?t know how to interpret this.
2) Perhaps because of this deal, there is a far greater differential in money to be made whenever a generic can be substituted. Does this deal benefit the patient and lower the take for the pharmacy and drug manufacturers?
3) There must be a pretty good mark-up on drugs for so many retail pharmacies to be competing so fiercely even though their overhead has got to be sky high with 80k/year employees and all the costs of operating a retail business.
4) If it is all about prescription volume, how can a slow retail pharmacy filling 100 scripts a day in a Target stay afloat? Why in the hell would they stay open all night and fill a handful of scripts while paying someone $50/hour?
5) Lastly, if the drug companies, retail outlets and pharmacists are making out so well, who is really footing the bill? The insurance companies, the cash customers and the federal govt?
1) I know from a brief stint in retail that there is some kind of general deal that has been worked out with the drug manufacturers regarding their cut of every prescription that is filled. I have seen the term AWP- 18% + $1 but still don?t know how to interpret this.
2) Perhaps because of this deal, there is a far greater differential in money to be made whenever a generic can be substituted. Does this deal benefit the patient and lower the take for the pharmacy and drug manufacturers?
3) There must be a pretty good mark-up on drugs for so many retail pharmacies to be competing so fiercely even though their overhead has got to be sky high with 80k/year employees and all the costs of operating a retail business.
4) If it is all about prescription volume, how can a slow retail pharmacy filling 100 scripts a day in a Target stay afloat? Why in the hell would they stay open all night and fill a handful of scripts while paying someone $50/hour?
5) Lastly, if the drug companies, retail outlets and pharmacists are making out so well, who is really footing the bill? The insurance companies, the cash customers and the federal govt?
