Undoubtedly, many independent pharmacies have a hard time choosing between drug rebates and low wholesale drug prices. There are no universal best practices for pharmacies to follow, so an independent pharmacy is responsible for creating its own. Here is some information that should help you formulate practices for your own pharmacy.
As you probably, drug rebates can add up and allow you to enjoy significant savings. Thanks to drug rebates, it is possible that you will frequently pay below list price for drugs. However, there are some disadvantages of drug rebates.
When it comes to traditional consumer rebates, the consumer knows exactly how much money he or she can expect to save by making a purchase. On the other hand, drug rebates for pharmacies tend to be more complicated. There are generally two things that need to occur for a pharmacy to get a drug rebate.
- The manufacturer will set a minimum purchase level and the supplier will need to reach it to get a rebate. The supplier can then pass the drug rebate to pharmacies.
- To get the drug rebate, the pharmacy needs to purchase enough from the supplier.
The process is blind for both stages. Therefore, the pharmacy will not have a good indication of how much rebate they can expect to receive. Unsurprisingly, this can make planning when it comes to inventory expenditures hard.
The system for drug rebates is designed this way in order to build loyalty. However, it could be argued that the system actually produces financial pressure rather than true loyalty because a pharmacy fears that they could miss a drug rebate.
Low Wholesale Drug Prices
If a pharmacy can purchase a drug from a certain supplier at a far lower retail price than normal, this is definitely a huge plus. In fact, low wholesale drug prices can be comparable to a large rebate. One of the main advantages of low wholesale drug prices is that you notice the savings immediately. There’s no need to wait to have the savings actualized.
Also, if you have one or two drug wholesalers as your primary supplier, you may not need to worry about minimum purchase requirements. The main uncertainty about buying from drug wholesalers is that prices won’t be consistent and will fluctuate from time to time. Therefore, it is recommended that if you use an incredibly low price on a product that you buy regularly, you should purchase a lot of it.
If you’re trying to determine whether you should choose drug rebates or low wholesale drug prices, you should figure out what percentage of money that drug rebates are saving you. Always compare prices and potential savings before you buy. Potential for savings sometimes arises in unexpected places.
For more information about choosing between drug rebates and low wholesale drug prices, don’t hesitate to contact us here atA Plus Corp by calling 909-597-8818.