Category Archives: Frequently Asked Questions

Physician Medication Dispensing Frequently Asked Questions

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What is physician dispensing?

Physician dispensing is the process of dispensing medications directly by a physician or other authorized medical healthcare provider to their patients at the point of care. Each state regulates physician dispensing. The following five states are where dispensing is restricted: Massachusetts, Montana, New York, Texas and Utah. Generally, those allowed to dispense are licensed medical professionals.

What are the upfront costs incurred when adding MEDeRx’s physician medication dispensing program into my practice?

Whether you choose our Worker’s Compensation Managed Program or our Cash and Carry program, the upfront capital cost to begin are minimal. As long as your office is connected to the Internet you will be able to access our MEDeRx physician dispensing software. The initial costs consist of prepackaged medications, Rx labels and Surescripts fees if you desire to connect your EMR to MEDeRx’s software. The prepackaged medications are normally on 30 day terms. No cost are incurred for shipping on orders that meet the minimum requirements.

How much time does it take to dispense medication?

In less than one minute, using MEDeRx physician dispensing software, a dispense can be completed. Since your office will already have prepackaged and labeled medications which are identified as inventory in the MEDeRx software, it only takes a few steps to dispense through our software.

Do I need a special printer for the Rx label?

The Rx label is printed as the last step in the dispense process. The Rx label contains medication information that is substantially similar to any standard pharmacy. A special printer is not required. Any LaserJet, ink-jet or similar printer that you have in your office will be sufficient.

How does your MEDeRx dispensing software work?

Once you have logged into the web-based software, the process can be completed in the following steps: select the patient, select the medication to be dispensed, print the label and adhere to the bottle. For Workers Compensation dispenses, you must input the claim number, name and address of insurance company, name of employer and date of injury.

Where will I store the prepackaged medications?

For the storage of prepackaged medications, the FDA and DEA regulations stipulate the need for a locked cabinet or drawer. Controlled substances must be stored behind a double lock system. Most of our clients use a small portion of their cabinet storage space behind their reception area.

What are the benefits of physician dispensing to my patients?

Convenience, cost savings and compliance are the three main advantages physician dispensing provides. With respect to compliance, half of the 2 billion prescriptions filled each year are taken incorrectly: one-third of patients take all the medications, one-third take some, one-third don’t take any and all; dispensing at the point of care improves patient compliance by reducing the no-fill rate and decreases long-term health costs. Patients often appreciate physician medication dispensing because they can avoid a trip to the pharmacy as well as the need to wait for the prescriptions to be filled. Patients often save money by obtaining the prescriptions of the doctor’s office versus the pharmacy.

How do I determine what price to charge the patient?

For Worker’s Compensation patients, state fee schedules determine reimbursement. For Cash and Carry patients, each demographic is unique. One recommendation is to determine the cost of medications and then add a reasonable markup. Taking into consideration, most patients save time and money as a result of in-office dispensing by eliminating the separate trip to the local pharmacy. In office dispensing is a growing ancillary program for many practices and a great way to increase revenues.

Why is MEDeRx’s physician dispensing software a leader in the industry?

Our web-based software program was created to streamline the process of dispensing medications. The software is a user-friendly system that makes it possible for offices to dispense prepackaged medications quickly and efficiently. Some of the many benefits include, but are not limited to, managing, ordering, inventory, reporting, tracking and dispensing medications right from your desktop.

Have questions? We want to answer them

Dispensing medications to your patients with MEDeRx is an easy and straightforward process. Please contact us today for more information and to schedule your free demonstration.

Sales & Customer Support (208) 543-7447
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Implementing A Physician-Dispensing Program

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physician dispensing doctor







How long does it take to set up an in-office medication dispensing program for my office?

The Typical In-Office Installation and Staff Training Takes Less Than One Hour

We often get asked how long it takes to install and train an office/staff for medication dispensing services. The answer in most cases is “less than one hour”.  There are many variables to consider including the size of your clinic/staff and reimbursement types offered. offers the following services designed to provide a seamless transition to in-office medication dispensing.

-Full Staff Training (typically, required training time is less than 1 hour)
-Formulary Development and Support
-Workers’ Compensation EDI Support
-Online and Continuing Education/Training Available
-Regional Manager Account Support
-24 Hour Technical Support
-Dedicated Client Service Personnel
-On-Call Pharmacist

Web Based Software is a web-based software application meaning, there is no software program to download or install. As long as you have access to the internet you can instantly access the MEDeRx software application. There is also no need to bring in and pay for additional equipment, computers or printers. The MEDeRx application can be ran on the same Mac, PC or tablet that you are already running with you EMR, calendar and emails.

Multi-Repackager Capabilities

Another question we often get asked is how medications are ordered and how much time is involved with the ordering process. has over 20 medication suppliers (AKA repackagers) integrated into the software meaning, orders are placed in real time, online, just as if you were shopping on Amazon. We offer multiple repackagers to provide you with the best available pricing. The delivery time on an order is filled within 1-3 business days and overnight options are available.  MEDeRx also offer the following services to make the medication ordering processes easy and cost effective.

  • Multi-Repackager Capabilities
  • Automated Inventory Reordering
  • Product Expiration Alerts
  • Free shipping on orders over $100

The MEDeRx Advantage

As with all businesses, MEDeRx has an obligation to our customers to provide the best products and services available.  Below are a just a few reasons why more doctors continue to choose MEDeRx over other leading brands:

-Ease of Use – The average dispense can be processed in less than 30 seconds
-Detailed Management, Utilization and Financial Reporting
-Refill Monitoring and Automated Patient Sequencing
-Full Scale Drug Utilization Review (Drug/Drug, Drug/Allergy, and Drug Too Soon)
-Encrypted Offsite Data Backup and Recovery
-Multi-Repackager Ordering Capability, Automated Inventory Reorder and Product Expiration Alerts
-Electronic NCPDP Claims Submission Capability
-Electronic State Scheduled Drug Reporting (PDMP)
-Site-level Customization (Including User Security Levels, Product Sigs, Reorder Quantities, and Cash-pay Collection Amounts)
-HL-7 Data Interface and Data Exchange Capability

For more information about implementing in-office medication dispensing in your office please contact the experts at TODAY for your free consultation.

Features of Dispensing Software

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Learn more about physician dispensing software and compare MEDeRx to the other leading brands: Software Specifications

A client recently asked us to provide a MEDeRx-feature-comparison to help them select a physician dispensing system. After compiling the information, we felt that this was a good summary of what sets MEDeRx apart from the all the other dispensing systems: Software Specifications

E-Prescribing from your EMR to MEDeRx’s Dispensing Platform

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E-Prescribing to MEDeRx’s Dispensing Platform

A common question surrounds the issue of whether physicians can e-prescribe to MedeRx’s in-office dispensing platform. In most cases, the answer is a resounding “YES”. However, some minor steps are involved as discussed below.

Physicians can use their EMR system to e-prescribe to their own location for the purposes of getting patient and prescription information into the MEDeRx dispensing software. Since patient/prescription information is sent electronically, the chances of an error is greatly reduced. Not to mention the time saved in transcribing information.

In order to e-prescribe, a gatekeeper company called “SureScripts” controls the electronic exchange of prescription information between prescribers and pharmacies and/or in-office dispensing locations. The MEDeRx dispensing software is certified with SureScripts as a pharmacy software vendor.

For your office to transmit prescription claims from your EMR to the MEDeRx platform, the following steps are required. The first step is to get your practice a NCPDP Id. (If you already have one, you can skip this step.) Registering with for an NCPDP Id takes about one day and a one time cost of $275.00. Step two is registering your practice with SureScripts. SureScripts registration takes about one day and a one time cost of $125. The total time is typically two days and total cost is $125 or $325 depending on whether you already have a NCPDP Id or not. Of course, our team of professionals can assist you with NCPDP and SureScripts registration.

Please contact us to get started today!!

What are the Federal requirements for physicians when storing or handling scheduled medications?

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Practitioners include physicians, dentists, veterinarians, researchers, hospitals, pharmacies, or other persons registered to do research, to dispense, or to use in teaching or chemical analysis a controlled substance in the course of professional practice.

Minimum security standards for practitioners are set forth in the regulations (Title 21 CFR 1300 to end) and are to be used in evaluating security. They may not necessarily be acceptable for providing effective controls and operating procedures to prevent diversion or theft of controlled substances. For example, a hospital that keeps large quantities of controlled substances on hand may need a safe or vault similar to the requirements for a distributor. The same reasoning also applies to other practitioners.

A practitioner’s overall security controls will be evaluated to determine if they meet the intent of the law and regulations to prevent theft or diversion.

Minimum Standards for Practitioners’ Handling of Controlled Substances

Controlled substances must be stored in a securely locked cabinet of substantial construction. Pharmacies have the option of storing controlled substances as set forth above, or concealing them by dispersal throughout their stock of non-controlled substances.

Even though the Federal regulations do not specifically define locked cabinet construction, the intent of the law is that controlled substances must be adequately safeguarded. Therefore, depending on other security measures, a wooden cabinet may or may not be considered adequate. In an area with a high crime rate, a strong metal cabinet or safe may be required.

Some of the factors considered when evaluating a practitioner’s controlled substances security include:

  1. The number of employees, customers and/or patients who have access to the controlled substances.
  2. The location of the registrant (high or low crime area).
  3. Use of an effective alarm system.
  4. Quantity of controlled substances to be kept on hand.
  5. Prior history of theft or diversion.

Again, an overall evaluation of the practitioner’s security will be made by DEA using the general and minimum security requirements as outlined in this manual to assure that the controlled substances are stored securely.

Other Security Controls for Practitioners

In order to minimize the opportunities for theft or diversion of controlled substances, practitioners have an obligation not only to provide effective physical security, but also to initiate additional procedures to reduce access by unauthorized persons as well as to provide alarm system where necessary.

Employee or Agent

A practitioner must not employ an agent or individual who has had his application for registration with the Drug Enforcement Administration (DEA) denied or revoked at any time, and who, as a result of his employment, will have access to controlled substances.

Loss or Theft

A practitioner shall notify the nearest DEA Field Office of the theft or significant loss of any controlled substance upon discovery of such loss or theft. The practitioner shall promptly complete and submit DEA Form 106 regarding the theft or loss.

Blank prescriptions and DEA Order Forms

A practitioner should develop the practice of keeping blank prescription forms in locations which would preclude patients or casual visitors from stealing the forms for the purpose of falsification. Unused DEA Order Forms should also be kept in a secure location for the same reason.

Additional Security Measures

Although not specifically required by Federal law or regulation, the following additional security measures are recommended to enhance the overall security of non-practitioners as well as practitioners in some situations….Continue

American Medical Association (AMA) Code of Ethics on Physician Dispensing

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The American Medical Association (AMA) Code of Medical Ethics sets forth ethical rules relating to the prescribing and dispensing of drugs. In particular, Opinion 8.06 provides, inter alia, that:

  • (i) physicians should prescribe drugs based solely upon medical consideration, patient need, and reasonable expectation of the drug’s effectiveness,
  • (ii) physicians may dispense drugs within their office practices so long as the dispensing primarily benefits the patient and complies with self-referral guidelines,
  • (iii) physicians must respect the patient’s freedom of choice in selecting who will fill their prescriptions, and
  • (iv) physicians must not discourage patients from requesting a written copy of a prescription.

Although AMA guidelines typically do not have the force of law, some states have incorporated AMA standards into state law. Moreover, these standards of clinical purpose and patient freedom of choice are underlying principles for in-office dispensing in most states, whether explicit or implicit.

What is a PDMP? Prescription Drug Monitoring Program

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What is a Prescription Drug Monitoring Program?

According to the National Alliance for Model State Drug Laws (NAMSDL), a Prescription Drug Monitoring Program, or PDMP, is a statewide electronic database which collects designated data on substances dispensed in the state. The PDMP is housed by a specified statewide regulatory, administrative or law enforcement agency. The housing agency distributes data from the database to individuals who are authorized under state law to receive the information for purposes of their profession.

For a list of States with Prescription Monitoring Programs, please visit the link For a quick reference, most states have operational PDMP‘s that have the capacity to receive and distribute controlled substance prescription information to authorized users.

Each state designates a state agency to oversee its PDMP, which may include health departments, pharmacy boards, or state law enforcement. Please visit the following link to view PDMP by Operating State Agency Type at:

MEDeRX’s software electronically reports the required data to each state agency that has an operational PDMP program. As a result, compliance is assured and reporting is automated for your office, clinic or urgent care.

If you are interested in learning about your specific states rules and regulations as they pertain to PDMP reporting, the Prescription Drug Monitoring Program Training and Technical Assistance Center ( provides links to each state’s statutes and regulations regarding PDMPs.

Get Your Questions Answered. 

Contact MEDeRx today to learn more about point-of-care medication dispensing and how our program will benefit you and your patients.

Have questions? We want to answer them

Contact us today to learn more about MEDeRx or to request a live demo of the software. We can be reached by Phone, email or by submitting the contact form. We look forward to talking with you.

Sales & Customer Support (208) 209-4333
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Can Ambulatory Surgical Centers dispense medications?

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What is an Ambulatory Surgery Center?

We are commonly asked whether or not a physician can dispense medications, for profit, to a patient at an Ambulatory Surgery Center owned or partially owned by the dispensing physician. It begs the question: what is an Ambulatory Surgery Center?

Ambulatory Surgery Centers—known as ASCs—are modern health care facilities focused on providing same-day surgical care, including diagnostic and preventive procedures. Generally, each state licenses ASC’s by their respective governing body. The Center for Medicare and Medicaid certify ASC’s for their programs.

Can an Ambulatory Surgery Center Dispense Medications?

By and large, states require a separate pharmacy license or permit to dispense medications at an Ambulatory Surgery Center. For example, California now allows physician-owned ASC’s to obtain a permit to purchase drugs at wholesale for administering or dispensing to their patients under the direction of a physician. When they dispense, they are limited to dispensing a 72-hour supply. As with licensed ASCs, the Pharmacy Board is authorized to inspect a physician-owned ASC that has a limited pharmacy license at any time.

A potential work around from obtaining a separate pharmacy license or permit is dispensing medication from a physician’s office. In most states a physician can dispense medications in the usual course of professional practice and for a legitimate medical purpose, for profit, to his or her patients from his or her office.

In the instance where a physician has an independent office located within the ASC or an office located nearby, medication can be dispensed from the physician’s office pre or post operatively in such states that allow this conduct. In some states, a doctor can share the same entrance with the ASC but must be separate entities and waiting rooms.