Copyright 2000 The Buffalo News
The Buffalo News
December 27, 2000, Wednesday, FINAL EDITION
SECTION: BUSINESS, Pg. 5B-
LENGTH: 762 words
HEADLINE:
PRESCRIPTION FOR SUCCESS;
AREA FIRM GIVES PHYSICIANS ONLINE LINK TO
PHARMACIES
BYLINE: CHET BRIDGER; News Business Reporter
BODY:
An Amherst start-up company will try
to parlay two emerging trends, the wireless Web and soaring prescription drug
sales, into a winning formula.
PBM Micro is jumping into the
business-to-business commerce market with an Internet platform
for writing prescriptions. The company's system operates on
personal digital assistants, such as Palm Pilots, and hand-held computers.
The system currently operates on the Microsoft Windows operating system
and has not yet been adapted to the Palm operating system. Doctors can use the
wireless devices to communicate with a computer server storing information such
as patient-health data, drug formularies of managed-care companies and drug
prices.
"The whole concept we have is a virtual pharmacist to be part of
the team that works with the physician to prescribe the most appropriate
medication," said Dennis Sajdak, chief operating officer of PBM Micro.
Physicians can use the device to check for allergies or possible
interactions with other drugs a patient takes before prescribing a new
medication.
The system also recommends generic drug alternatives to
doctors. Generic drugs have the same active ingredients but are less expensive
than brand products.
Dr. Thomas Smith, a local cardiologist testing the
PBM system, said he was skeptical at first but has been won over. Having drug
information at his fingertips greatly reduces the amount of time Smith spends on
the phone with pharmacies and managed-care plans.
"Probably the biggest
benefit to me is the time savings for me and my staff," Smith said.
Acceptance of the new technology by doctors will have some "limiting
factors," he said. Many offices may have to make up-front investments in new
equipment, because the system could be slow without a good Internet connection,
Smith said.
Many doctors will also have concerns about confidentiality
of records, said Smith, adding that he is satisfied with the system's
information safeguards.
The electronic prescribing system, three years
in the making, is primarily the brainchild of a local pharmacist who wants to
remain anonymous, Sajdak said.
PBM Micro began operating on Sweet Home
Road this year with $ 500,000 from private investors, but is looking for another
round of venture capital. It currently employs eight but that number is expected
to reach 100 if a national market develops for the product.
The company
is entering a market that already has some established players. Allscripts Inc.
of Libertyville, Ill., is a publicly traded company with close to 5,000
physicians using its wireless system and about $ 125 million cash on hand.
"I think we have a significant lead, which is important, because there's
a certain learning curve in this business," said Ken Shore, director of
marketing for Allscripts. "It's a very challenging market to crack. You've got
to be patient and it's all service driven."
Several other companies are
also rolling out electronic prescribing systems, including a joint venture
between Electronic Data Systems Corp. and drug maker Eli Lilly and Co.
The market is quite young and could have tremendous growth potential.
Wayne Anderson, dean of the University at Buffalo School of Pharmacy and
Pharmaceutical Sciences, expects electronic prescribing to gradually become
common medical practice. The hand-held systems save time for both doctors and
pharmacists and help reduce medical errors, Anderson said.
Electronic
prescribing eliminates the need for doctors to scribble prescriptions. Simple
handwriting problems lead to a lot of medical errors, Anderson said.
"Often times there are drugs with very similar names and very similar
dosage amounts. You may walk in for an anti-depressant and walk out with a
diabetes medication, which can kill you," Anderson said.
Sajdak, the
former CEO of Charter Behavioral Health Systems in South Bend, Ind., believes
PBM Micro's electronic prescribing system has a competitive edge because of its
technical features. Allscripts system works on a client-server network, while
PBM is launching an Internet platform.
Hand-helds using the PBM platform
communicate with an application service provider in New Jersey, which can then
transmit data to pharmacies, insurance companies and other sites with Internet
access.
Patients could ultimately receive a user name and password,
allowing them to tap into their own medical data. For example, a patient who got
rushed to an out-of-town emergency room could give doctors the user name and
password to tap into their medical records, Sajdak said.
GRAPHIC: SHARON CANTILLON/Buffalo News; Dennis Sajdak,
chief operating officer of PBM Micro, uses a handheld computer that enables
physicians to electronically prescribe medications. The device connects their
orders immediately to pharmacies.
LOAD-DATE: December
29, 2000 
