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06/08/2013 Allen Jacobs, DPM
Compounding Pharmacies (Marc Katz, DPM)
Dr. Katz's letter expressing his concern over the present costs of compounded topical pharmaceuticals is reflective of medicine in general, and his concerns are not unique to the compounding industry. How much does Dr. Katz charge for orthotics? Probably more than he gets for a digital arthroplasty. How about CAM walkers? Probably more than he gets for a level-2 office visit. And how many orthotic labs bid for our business?
The assertion that these pharmacies add components to drive up the cost is ridiculous. The pharmacies may only dispense what the healthcare practitioner prescribes. They may legally do nothing more or less. Topical formulations are indeed expensive. So are digital implants, large external fixation devices, ultrasound-guided injections, night splints for plantar fasciitis, and so on. When used under appropriate circumstances, all advanced therapeutic interventions offer our patients benefits.
Does Dr. Katz use locking plates, screws, orthobiologics when a K-wire offers an adequate alternative? How about skin graft substitutes for relatively superficial ulcerations ? Do the corporations making these products recover far more reimbursement that the doctor performing the ORIF, bunionectomy, or ulcer debridements ? What about the selling of products in the office that could be purchased less expensively by the patient in local pharmacies or on line. Does Dr. Katz feel that this contributes to the cost of care?
The "market" will adjust prices for compounded pharmaceuticals over time. I suggest that the indicated and ethical application of all newer technologies should be sufficient to resolve the concerns Dr. Katz.
Disclosure: I have lectured for TPS and Bellevue pharmacies on these subjects.
Allen Jacobs, DPM, St. Louis, MO, allenthepod@sbcglobal.net
Other messages in this thread:
06/10/2013 Troy Espiritu, DPM
Compounding Pharmacies (Marc Katz, DPM)
I must partly agree with Dr. Katz. I recently had a patient present to me with chemo induced neuropathy. Another local physician had prescribed a topical consisting of ketamine, bupivacaine, clonidine, doxepin, gabapentin, ketorolac, and pentoxifylline. This particular patient was rather frustrated because the topical gave him no relief. This patient also presented with an EOB which clearly showed his insurance co. had paid over $400.00 for the single tube that was smaller than a tube of toothpaste.
After speaking to several reps and compounding companies, a few things seemed very clear to me. In my opinion, there is a direct correlation between the number of compound pharmacies and reimbursement. They all make it very clear they will be happy to “work with you” with your Medicare patients, but they really want your private pay patients for obvious reasons.
I believe the way these companies are reimbursed is directly based on how much “stuff” is put into the compound. From my understanding, the more that goes in it, the more they get paid. And yes, as Dr. Allen Jacobs pointed out, “The pharmacies may only dispense what the healthcare practitioner prescribes. They may legally do nothing more or less.” They also make it very easy to “check a box” to treat numerous conditions ranging from peripheral neuropathies, plantar fasciitis, Morton's neuroma, gout, wart cream, onychomycosis, as well as hallux rigidus/DJD.
As I type this I am looking over several “Podiatric Formulations” from several of these companies. One has the following combo to treat “hallux rigidus/DJD” - diclofenac, baclofen, bupivacaine, gabapentin, cimetidine, glucosamine. While another combo recommended for “onychomycosis” includes acetaminophen as well as several “other” items.
I would love for someone to share with me how topical cimetidine, a histamine H2-receptor antagonist that inhibits stomach acid production, is going to help my hallux rigidus patient or how topical acetaminophen will help my patients with onychomycosis. I actually spoke with one compound pharmacist who said the acetaminophen will help soften the nail making the other medications more effective. Yes, all reps are happy to provide many anecdotal cases of how it has it has helped so many people and how “all the ortho guys” are using it on their knees and hips etc. But I would love if someone could respond with the following answers:
Do compound pharmacies make more $ if more “stuff” is in a compound? In other words, is this part of the reason they want me to prescribe topical acetaminophen on a fungal nail? From my understanding they get reimbursed for each product, regardless of the amount.
Do topicals have to undergo the same FDA approval process as oral medications? I have been told that each product in the topical must be FDA approved, but from my understanding it doesn't necessarily have to be FDA-approved for the condition we are treating. For example, acetaminophen is clearly FDA-approved, but not for the treatment of a fungal nail. Yet, if it goes in, they can bill for it. Are there any high level, evidence-based (multi-center, double blinded) studies to show the effectiveness of these products?
In my opinion, these companies are coming out of the woodwork because they have found a billing loophole. Once the loophole is closed, they will likely go away. Also, I found it interesting that the patient I mentioned responded well to Lyrica, which his insurance does not want to pay for... the same company that paid $400 for the cream that did not work.
Troy Espiritu, DPM, Columbus, GA, columbusfootdoc@gmail.com
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