For Docs, No Reps = More Money!
3 CommentsBy Ed Silverman // August 6th, 2007 // 8:52 am
Of course, closing the door on sales reps also means giving up samples, new info, pens, pizza, and maybe baseball tickets (for those docs who accept such things). And as many docs will tell you, samples are important for poor patients. That aside, an interesting piece in Medical Economics offers a quickie breakdown of the potential savings for a doc who gives reps the bum’s rush…
“Nationwide, there are an estimated 90,000 to 100,000 reps; each calls on eight to 10 physician offices a day. Some practices may get only two to four visits a week. However, in 2005 and 2006, primary care physicians deemed as ‘heavy prescribers’ were called on by an average of 29 reps a week, according to Health Strategies Group, a research firm that tracks pharma.
How those visits break down hints at the possible strain on physician practice: In 2005, 85 percent were drop-ins, 5 percent were appointments, and 10 percent were lunch dates…And drop-ins and appointments eat up roughly 60 minutes a week, Health Strategies Group reports.
If (a doc) used that extra time to see four established Medicare patients - using CPT code 99213 for an intermediate visit - (the doc) would collect roughly $60 per visit, $240 per week, and $12,000 over 50 weeks. Subtract 50 percent for overhead, and the doc nets an extra $6,000 a year.”
Whether $6,000 is a lot of money is an individual matter, and that must be weighed against whatever is lost (don’t forget the donuts). But the calculation underscores how drugmakers are under pressure to further justify all those reps, because some docs will find those savings attractive.
Hat tip to PharmaGossip
Hank
On the other hand, if the doc sells the doughnuts…..
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