Overcoming Hurdles to Achieve Physician In-Office Dispensing of Drug Therapy and Physician Owned Pharmacies

With the advent of value-based healthcare reimbursement becoming more of a reality each and every day for healthcare providers, physicians are frequently looking for new and innovative ways to maximize quality in the services they provide each of their patients. One of the ways physicians aim to do this is through in-office physician dispensing of prescription medications, or physician owned pharmacies. In-office physician dispensing or physician owned pharmacies can make the provision of healthcare services more efficient for patients and allow the physician to monitor the patients’ drug therapy and compliance more closely.

However, hurdles to in-office dispensing and physician owned pharmacies do arise, including compliance with Federal and state laws and regulations. For instance, some states outright prohibit physicians from owning pharmacies, while other states place heavy restrictions on physicians looking to own pharmacies. The Federal government regulates physician dispensing and physician owning pharmacies through the federal Anti-Kickback Statue and the Stark Law.

While these hurdles do possess challenges, they nevertheless can be overcome. One method for overcoming these challenges includes physician-owned Management Services Organizations (MSO). The physician owned MSO model can overcome federal and state challenges, but physician must be careful to structure these appropriately in order to comply with the many Federal and state requirements. Contact Frier Levitt to speak to an attorney.

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