Finding opportunities for pharma in ePrescribing
The pharmaceutical industry has been largely resistant to ePrescribing, fearing a decrease in returns on advertising investment – particularly in physician-targeted sales.
By on Sep 4, 2007The pharmaceutical industry has been largely resistant to ePrescribing, fearing a decrease in returns on advertising investment particularly in physician-targeted sales. However, according to research conducted by independent market analyst Datamonitor, pharma should see ePrescribing as an opportunity, not as a threat.
Why ePrescribe?
ePrescribing is when a physician uses electronic media to produce and transmit a drug prescription. The use of electronic media can improve both the speed and the safety of drug prescriptions by allowing for easier, more comprehensive communication of information on drugs and patients.
The Gorman Health Group report focused its research on Medicare patients, but the results can be expanded to encompass all consumers of prescription medications. The study lists several reasons that ePrescribing is superior to traditional paper-based prescriptions.
ePrescriptions address serious risks to consumer safety, risks attributed to a lack of information. ePrescription allows doctors to know immediately if, for example, the drugs they prescribe could have adverse interactions with other medications patients are currently taking, or if there are allergy concerns.
The Gorman study estimated that between 2008 and 2017, nearly 1.9 million adverse drug events could be prevented if doctors had immediate access to patients's medical histories and records. Since these events result in patients being sickened, hospitalized or killed, human suffering could be greatly reduced, and the savings in health expenditures would be in the billions.
Misinterpretation of information can also be dangerous. Doctors are notorious for their illegible handwriting; e-prescriptions would eliminate the possibility of patients being given incorrect dosages or medicines if a nurse or pharmacist fails to understand a doctor's instructions.
Additionally, as Kimberly O'sMalley of Datamonitor points out, paper prescriptions are easily forged and difficult to track. Once paper prescriptions leave a doctor's office, says O'sMalley, they become impossible to track. There is no way to assess patient adherence to the prescribed medications.
Concerns and opportunities for the pharma industry
Many pharma professionals are not yet sold on the idea of ePrescribing. If ePrescribing takes some of the power of prescribing out of the hands of doctors, then advertising directly to doctors which constitutes the bulk of advertising money spent by the pharma industry becomes a lower-return investment. It is apparent, however, that a shift to ePrescribing is in the works, and it is in the best interests of the pharma industry to get involved.
According to the Datamonitor study, ePrescribing should be viewed by the industry as an opportunity, not as a problem. There are two key ways for the pharma industry to turn ePrescribing to their advantage.
First, pharmaceutical companies should be actively involved in the creation of standards for electronic prescribing technologies. With so many stakeholders (pharmacy benefit managers, retail pharmacies, payers, etc.) poised to benefit from ePrescribing, the ones that control the messages coming through the system are the ones likely to benefit most.
For example, says O'sMalley, if a physician prescribes a drug not covered by a patient's insurance, the system might send an alert: the doctor then has the option to choose a less-expensive competitor or generic. This not only impacts sales of drugs, it also mitigates the effects of direct-to-physician marketing.
However, if pharma companies cooperate in producing industry wide standards, then the messages generated by an ePrescribing system are far less likely to favor any single industry stakeholder.
Second, to remain competitive in the face of greater access to information at point-of-care, pharma companies need to focus on developing and maintaining brand loyalty and ensuring formulary placement for key drugs.
Advantages to pharma include increased patient compliance. A recent study by the Pharmaceutical Care Management Association (PCMA) reported that only 51% of patients with high blood pressure continue to take their medication. Patients who are not experiencing acute symptoms may simply stop taking the drugs they'sve been prescribed. The ability to track prescriptions and send alerts when prescriptions aren'st filled properly could mean greater long-term sales.
Finally, a decrease in sickness or deaths thanks to reductions in adverse drug events would mean a decrease in human suffering and a more positive public attitude towards the pharma industry.