Use of Compound Drugs, Medical Foods, and Co-Packs in California's Workers' Compensation Program

An Overview of the Issues

by Barbara O. Wynn

Download eBook for Free

Full Document

FormatFile SizeNotes
PDF file 0.8 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Summary Only

FormatFile SizeNotes
PDF file 0.1 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

There is considerable controversy over the growing use of compound drugs, medical foods, and co-packs for workers' compensation (WC) patients. The issues surrounding the use of these products rest on uncertainties regarding whether the products are medically appropriate and whether payments are reasonable. Clarifying the coverage and payment rules and removing inappropriate financial incentives for physician-dispensing would help address these issues.

Table of Contents

  • Chapter One


  • Chapter Two

    Compound Drugs, Medical Foods and Co-Packs

  • Chapter Three

    Determining payment under the Official Medical Fee Schedule OMFS

  • Chapter Four

    Tools to Ensure Drugs Are Medically Appropriate and Payments Are Reasonable

  • Chapter Five


  • Appendix A

    California Pharmacy Regulations

  • Appendix B

    OMFS Regulations

  • Appendix C

    Sample Bills for Compound Drugs

  • Appendix D

    Warning Letter to Physician Therapeutics, LLC

This research was conducted under the umbrella of RAND's Center for Health and Safety in the Workplace.

This report is part of the RAND Corporation Working paper series. RAND working papers are intended to share researchers' latest findings and to solicit informal peer review. They have been approved for circulation by RAND but may not have been formally edited or peer reviewed.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.