Do Doctors get Commission for Prescribing Drugs

Last updated on October 9th, 2024 at 03:59 pm

Do Doctors get Commission for Prescribing Drugs – We have always been vocal about how the entire mechanism from visiting the doctor to getting the prescription and buying the medicine works. Even the way we buy medicines involves little to no brains as we simply go and buy what is written in the prescription and our non-questioning boils down to our exploitation by the following entities:

Doctors we visit
Hospitals where our loved ones or we are admitted/make a visit
Pharmaceutical companies
Medical Representatives
Drug Stores

Most of you are handed the branded medicine prescription that is priced higher than the generic ones. Almost 75% of the branded medicine producers are manufacturing generics that are priced 60% less than the branded ones. Why so? They follow the same compliance and are made on the same premises. Still, there is such a stark price difference. The reason is simple – everyone in the nexus eats their share of the pie.

Can Pharmacists Prescribe Medicine in India?

These people are the reason why you are paying more for medicines. Let’s explore how medicine buyers are sold branded drugs at a higher price.

A. The commission-driven business model of medical stores

Whenever you go to buy medicines at a pharmaceutical store, you will merely hand over the prescription that bears the name of a doctor or his/her clinic. And most often, you will find a medicine store near the doctor’s clinic or vice versa wherein the prescribed medicines will only be available in the store next door to the clinic. Every drug you buy will have a cost that is split between the manufacturers, medical store owners, and doctors.

Doctors get a commission for prescribing certain medicines that the nearby medical shop sells. Their network is vast and not just limited to a few shops in the nearby vicinity. As a medicine buyer, it is your right to know the medicines’ contents by questioning a doctor and even the medical store owner. You can also ask for the generic replacement and try it out for yourself to understand the difference as there is none.

B. Medical Representatives tying up with small clinics

As mentioned above, most small clinics and individual medical professionals tie up with the medical store; they also join hands with the Medical Representatives (MRs). Some medicines are given to doctors by MRs as gifts, and these come from leading pharma companies and agencies. Again, some of these medicines are provided on an experimental basis to check their implications on patients upon consumption.

You can recall your last visit to a General Physician in the neighbourhood and think of those yellow, white, and pink capsules. The ones that have no brand or labels but are given to you without any charges. Such medicines are not documented, and there is no costing or billing done, which itself is alarming as this gets into the zone of sales promotion in the industry to claim tax benefits.

C. Pharmaceutical Companies tying up with Hospital Chains

Another entity in this network is that of the chain of hospitals that ties up with the big pharmaceutical companies. Since the amount of inward patients is high in big hospitals, the margin for profits gets more significant for everyone in the nexus – doctors, pharma stores, companies, and hospitals. The work is similar to the models we discussed above, albeit with a difference. Here, the hospital chains are getting a considerable share of profits by recommending medicines bearing a specific brand name.

The pharma companies look to drive higher sales by tying up with hospitals that have a large number of beds. And since there are many agents in the supply chain, everyone gets their share of cut over here, including the visiting doctors in a hospital whose signature is your prescription.

Remember, none of these agents recommend generics as it does not benefit them, and therefore you will always end up paying more for the medicines. The best way to save money and avoid being exploited is to stay vigilant and question the points of authorities. It means you should question doctors when they prescribe medicines, ask pharma sellers what they are giving it to you, and ask hospitals to write you generics as well. We already talked about how generics are as effective as branded ones, so you need not worry about the quality.

Read: What are Generic Medicines?

FAQs on Do Doctors Get Commission for Prescribing Drugs

Q1) Can pharmacists prescribe medicine in India?

pharmacists in India are not authorized to prescribe medicines independently. In India, only qualified medical practitioners who are registered with the Medical Council of India (MCI) or State Medical Councils are legally allowed to prescribe medicines. These medical practitioners include allopathic doctors (MBBS), dental practitioners (BDS), and some other recognized medical professionals with prescribing rights, such as Ayurvedic, Unani, and Homeopathic doctors.

Pharmacists in India are responsible for dispensing medications based on prescriptions issued by qualified medical practitioners. They play a crucial role in providing medication-related information and counselling to patients, ensuring the safe and appropriate use of medications, and monitoring for potential drug interactions or adverse effects. However, pharmacists do not have the legal authority to independently prescribe medicines in India. Patients should always seek advice and prescriptions from qualified medical practitioners for their medical conditions.

Also, Read:

Q2) What are the prescription rules in India for doctors?

In India, the rules governing doctor prescriptions are regulated by the Medical Council of India (MCI) and respective State Medical Councils. Here are some general guidelines related to doctor prescriptions in India:

Qualification: Only qualified medical practitioners who are registered with the MCI or State Medical Councils are authorized to issue prescriptions. This includes allopathic doctors (MBBS), dental practitioners (BDS), and some other recognized medical professionals with prescribing rights, such as Ayurvedic, Unani, and Homeopathic doctors, as per their scope of practice.
Personal Examination: In most cases, doctors are required to personally examine the patient before prescribing medication. Telemedicine or online consultations may be allowed in certain situations, but they are subject to specific guidelines and restrictions.
Legibility: Prescriptions should be written legibly clearly and understandably to avoid any confusion or errors in dispensing medication.
Prescription Format: Prescriptions should include the doctor’s name, registration number, address, contact details, and qualifications. The patient’s name, age, and sex should be mentioned along with the date of the prescription. The generic name of the medicine, dosage form, strength, dose, frequency, and duration of treatment should be clearly mentioned. Any specific instructions or precautions should also be provided.
Brand Substitution: Doctors may prescribe medicines by generic names or brand names, but it is encouraged to prescribe using generic names to promote the use of cost-effective and quality medicines. If a specific brand is intended, the doctor should mention “Brand Medically Necessary” or “Do not Substitute” on the prescription.
Controlled Substances: Prescriptions for controlled substances, such as narcotics or psychotropic drugs, are subject to stricter regulations and should be issued in compliance with the Narcotic Drugs and Psychotropic Substances (NDPS) Act and other applicable laws.
Signature: The prescription should be signed by the prescribing doctor, indicating their agreement and responsibility for the medication prescribed.

Q3) What are the rights of pharmacists in India?

In India, pharmacists have certain rights and responsibilities to the Pharmacy Practice Regulations, 2015, issued by the Pharmacy Council of India (PCI), which is the regulatory body governing pharmacy education and practice in the country. Some of the key rights of pharmacists in India include:

Dispensing Medications: Pharmacists have the right to dispense medications to patients based on valid prescriptions issued by qualified medical practitioners. They are responsible for ensuring that the dispensed medications are safe, appropriate, and comply with the prescription.
Patient Counseling: Pharmacists have the right to provide counselling and information to patients about the proper use, administration, dosage, potential side effects, interactions, and storage of medications to promote safe and effective medication use.
Drug Interactions and Adverse Effects Monitoring: Pharmacists have the right to identify and manage potential drug interactions or adverse effects of medications, and provide appropriate interventions or recommendations to patients and prescribers to minimize potential risks.
Generic Substitution: Pharmacists have the right to substitute a prescribed brand-name medication with a generic equivalent unless the prescriber has specifically mentioned “Brand Medically Necessary” or “Do not Substitute” on the prescription.
Quality Assurance: Pharmacists have the right to ensure that the medications dispensed are of appropriate quality, stored properly, and comply with relevant laws and regulations related to drug storage, handling, and dispensing.
Professional Autonomy: Pharmacists have the right to exercise their professional judgment and make decisions based on their education, training, and expertise in the best interest of patients, within the legal and ethical framework of pharmacy practice.
Continuing Education: Pharmacists have the right to engage in continuing education and professional development activities to update their knowledge and skills, and stay current with the latest advancements in pharmacy practice.

Related – Roles of Pharmacists in India

Q4) Why doctors are not prescribing generic medicines?

Doctors in India are encouraged to prescribe generic medicines as per the guidelines and policies of the Government of India. Generic medicines are equivalent to brand-name medicines in terms of safety, efficacy, and quality, but they are generally cheaper because they do not carry the brand name and are not subject to the costs associated with marketing and promotion.

However, there may be various reasons why doctors may not always prescribe generic medicines in practice. Some of the common reasons include

Lack of availability: In some cases, doctors may not have access to a sufficient supply of generic medicines or may not be familiar with the availability of generic alternatives for specific medications in their practice setting.
Patient preference or familiarity: Patients may have a preference for brand-name medicines or may be familiar with certain brands, and doctors may prescribe accordingly to meet patient expectations or preferences.
Lack of information or knowledge: Doctors may not have complete information or knowledge about the availability, safety, efficacy, or cost-effectiveness of generic medicines, and may choose to prescribe brand-name medicines due to lack of awareness or confidence in generic alternatives.
Influence of the pharmaceutical industry: The pharmaceutical industry may promote brand-name medicines through various marketing strategies, such as providing samples, sponsoring medical conferences or events, or offering incentives to doctors, which may influence prescribing practices.
Legal or regulatory constraints: In some cases, doctors may face legal or regulatory constraints that limit their ability to prescribe generic medicines, such as requirements from insurance companies or hospitals, or limitations imposed by specific drug formularies or protocols.

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Conclusion:

It’s important to note that prescribing practices can vary among individual doctors, and not all doctors may follow the recommended guidelines for prescribing generic medicines. However, the government of India has been taking initiatives to promote the use of generic medicines, and patients are encouraged to discuss with their doctors the availability and suitability of generic alternatives for their specific medical conditions to make informed decisions about their healthcare.

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