DermaTran

Let me set the record straight as someone truly in the know. First, this company is not going anywhere. Moving assets-what does that mean? An eg would help. I will tell you what is going on-they are diversifying and this I know is a fact. They are moving more fixed costs out of the equation, in other words salary. Shady-I am not sure where that term comes in. There were some folks let go recently not is Sales, but while other pharmacies were overcharging or engaging in borderline acceptable billing practices over the past 2-3 years, these guys were using ingredients based on clinical value and objected to using overly high cost items (fluticasone, for eg) and these were avoided for better or worse for the most part (more on that), they used small sizes and lower %'s than average, and so on and now that pbms are cracking down, the owner is not a happy camper. At least they could have done what rest of industry was doing and doubled there money. They spent a fortune on the science, and yes the science guy(s) are gone, the main ones. It is to bad, as the studies these guys did are now the heart of what the whole industry uses. The science was the best in industry. Great job. But there was alot of negativity there as well, and they never really fit into the business model that the business/money guys wanted. They became a cost, and the science hasnt really helped with Payors. I dont think Science matters to Payors so it was flawed strategy from day 1, but Dermatran can be proud of their noble efforts and putting in tons of $ into science when almost no pharmacy tries to get studies published or Posters presented. I am rooting for these guys, because they have a good story and have approached business by undercharging the market in hopes that would be a long term winner. It sill might be, probably will be, as these creams are needed. Unfortunately, laws make it difficult to do contracting as retail pharmacy. The sales data is as transparent as there is in the industry....this industry is far from perfect, but these company is very transparent. I know that the sales force is pretty disengaged, and the winter combined with pbms has slowed business everywhere. So sales are down significantly (yes, I know this for a fact) and although their is concern with owners, it is about how to right the ship, not that they are abondoning ship. They will adapt, further cuts could happen, they will right size, diversify and maybe come up with a product that isnt a dog (Manos for Podiatry......really?), and eventually the creams will stabilize with Payors and dermatran will be in good position. But they are staying in healthcare.



They have money and support systems built into the business from day 1, and a independently wealthy primary owner.

 

The last message was spot on. The other post about DT going out of business is BS. Who can believe other reps who went to work for another company? Those reps were not producing scripts so why keep them? Think about it, reps who have been let go due to lack of productivity are in the know, yea right?
While Dermatran spent over a million dollars proving the science, which payers could not care less about, the R&D department became an albatross to Dermatran. This is not to knock the R&D folks, as they were great but a time comes when one has to run a business and make a profit. This is not rocket science.
If Dermatran goes out of business then no other pharmacy will be in the topical business either. Dermatran has diversified which is a must at this point. When the payers come around to this modality then those with a clean record will still be contracted and all those pharmacies doing it wrong will lose their contracts with the PBM's and will not be around. PBM's are now doing on site visits and turning up the heat on all pharmacies but if a pharmacy is doing things by the book they will keep their contracts and Dermatran sits in the light of doing things right.
Do not take the advice of reps jumping to another company as the gospel, unless you are all about drinking the Kool-Aid of those NOT in the know.

 

This place is a joke!

 

I would never work for these clowns. All they know how to do is steal other peoples ideas. They prove this over and over.

 

I know this is an old post but just to at least partially answer this question, the AWPs are determined by the manufacturers (or chemical wholesalers). The pharmacy just submits based on these determined AWPs and the pharmacy gets paid based on the contracted rate of reimbursement. Technically, when a pharmacy submits an AWP that is higher (OR LOWER) than the actual AWP, that's insurance fraud since you're not billing with an accurate AWP. Moreover, if the pharmacy submits a lower AWP, resulting in a lower reimbursement and accepts it, that's grounds for calling this the new "U&C" (usual and customary price). The reimbursement by a pbm is always the contracted rate or U&C, whichever is lower. This U&C also includes patients paying a cash price. For let's say whatever medication (or compound medication), the pharmacy bills the insurance company the AWP, let's say $100 but the pharmacy regularly charges a cash price to customers of $25. If the insurance company/pbm ever finds out, they will lower the reimbursement to $25 because that is the "usual & customary" price. So even with cash customers, the compounding pharmacy theoretically should bill at the AWP rate to keep the U&C from dropping. So basically, because the PBM is always trying to push down reimbursements (based on U&C and other gimmicks), the pharmacy is forced to always keep billing "high".

Whether these compounds are being maxed out for maximum reimbursement is a somewhat separate question.

 

One way that Dermatran can cut costs is to get rid of AVPs. They contribute nothing.

 

so true..bad leadership overall.

 

Who ever wrote this clearly has their head up their ass. It's all about leadership and there is none at the very top. Dermatran is failing, they already have an exit strategy and it involves creating a different company and dumping all the employees for different ones. They will let their people know the very day they go under. Real classy.

 

They let go ov several employees just last week. Can't bill Tricare anymore. Revenue has taken a dump!

 

Wow! You nailed it. That's exactly what is happening.

 

All I can say is if you have a health issue this company will give you preferential treatment also if you have children you will be able to work a full 40 hours and will less likely be laid off. Whereas the "other" people are forced to work 32 hours The pharmacists that are here now are incompetent and very hypocritical of the rules that are set in place. Also expect everything from you but you're not supposed to expect anything from them also "certain" people are treated differently instead of everyone the same.

 

Might as well be called DermaSCAM!!!

 

is this place still in business? I haven't seen a rep or RX pads in any offices for months. Last rep I knew of replaced all the old pads w coastal therapeutics pads?

 

I work for another compounder than DermaTran, and we are conducting clinical trials with our products. And not paid studies that are retrospective. Double-blind, placebo controlled, randomized, crossover studies. So there are still compounding pharmacies that are investing in clinical research.

 

What is the name of your company?

 

GREAT if you are also conducting RDBPC Studies... although personally I am skeptical of this w/o naming pharmacy. Costs too much $$$ as Dermatran found out, with health plans not increasing coverage. Nevertheless great news if you are conducting pain cream studies as it will further legitimize what an amazing option this is, and that pharmacies will invest/reinvest monies into further validating this mode of treatment and getting results into Poster Sessions and medical journals...... anyway good luck!

 

they've also discarded their operations people that built their company....

 

what a joke

 

Run for the hills, the fat lady is in song, all to be done and not for long.