Physician Dispensing & DME Frequently Asked Questions

What information do you need to provide an evaluation and proposal for in-office pharmaceutical dispensing?

To provide an accurate evaluation and proposal for your practice, we will need the following details:

• A copy of your practice formulary (the list of medications you commonly prescribe).

• The number of providers who will be prescribing medications.

• The average number of patients your practice sees per day.

• An overview of your payer mix (the distribution of insurance plans, including workers' compensation, private pay, Medicare, etc.).

This information helps us tailor a proposal that fits your specific needs and ensures compliance with regulations.

How much does it cost to start?

Startup costs depend on your volume and formulary size. Most practices need only basic storage, a printer, and dispensing software access. MedX provides a complete solution—web-based software, access to medication, billing, and compliance support—with minimal upfront cost. There is a fee to setup your EMR with SureScripts if you want to e-prescribe to your dispensary. There are also credentialing and monthly recurring fees should you want to do claim adjudication.

How can I be sure I'm charging patients the right price?

For cash-and-carry transactions, MedX ensures transparency and compliance with state regulations, helping you set fair and reasonable prices based on market rates, insurance reimbursement schedules, and state-specific dispensing rules. For insurance claims, the insurer will inform you of any copay, if applicable. For workers' compensation, the cost of the medication is billed directly to the insurance, so the patient does not incur any out-of-pocket expenses.

How are medications stored and tracked?

All medications are securely stored in lockable cabinets within your office. The dispensing software tracks inventory, expiration dates, and usage. Controlled medications (if dispensed) require additional safeguards and documentation.

How much time does it take to dispense medication?

Can I dispense controlled substances in my practice?

Yes, you can dispense controlled substances, but they are subject to additional state and federal regulations, including DEA registration and secure storage requirements.

What if I run out of stock or face an emergency?

We work with trusted suppliers to ensure that medication restocks are fast and efficient. In case of an emergency, our system will alert you when stock is low, and we’ll help you arrange expedited deliveries. You won’t have to worry about running out of critical medications.

What types of medications can be dispensed?

Most practices typically dispense affordable generic medications and acute care drugs that are commonly prescribed, such as pain relievers, antibiotics, anti-inflammatories, and topical treatments. While practices can also dispense brand-name and maintenance medications, generic and acute care drugs are the most frequently dispensed due to their cost-effectiveness for patients and the profitability for the practice. This approach ensures convenience for patients who need immediate treatment, while also providing a profitable, low-cost solution for your practice.

How long does implementation take?

Once paperwork is complete, the formulary is set, and the first medication order arrives, your staff can be trained and dispensing the same day. If you want to adjudicate pharmacy claims, credentialing may take up to 6 weeks, but you can start dispensing immediately for cash/carry and workers’ compensation patients.

With pre-packaged medications and EMR integration, the dispensing process takes less than a minute. The prescription is sent directly from the EMR to the dispensing software, automatically populating all patient and medication details. Simply retrieve the medication, scan the bottle, adjudicate the claim (if applicable), collect any payment (if applicable), and print the label. For workers’ compensation patients, there is no cost to the patient. The process is fast, accurate, and convenient for both your practice and your patients.

Is this a long-term commitment?

MedX agreements have a minimum term of 1 year for compliance purposes, but you may cancel at any time for any reason with a 30-day notice. This allows your practice to evaluate the program at your own pace and ensures that MedX continues to earn your business every month.

Physician Dispensing FAQ

How much additional revenue can our practice earn from in-office dispensing?

Industry data and customer practice reports suggest that in-office dispensing can generate anywhere from $20,000 to over $100,000 in additional income per year, depending on your patient volume, payor mix, prescribing frequency, and medication mix.

Specialties like orthopedics, pain management, and urgent care typically see strong returns, particularly when treating injury and workers’ comp cases. Some clinics report 15%–30% increases in annual practice revenue after implementing dispensing.

Actual results vary based on your workflow and compliance model. Our goal is to help you capture revenue already generated by your prescriptions—while enhancing patient convenience and treatment adherence. We’ll provide a tailored projection during your consultation.