A mechanism for dispensing pills from an array-type pill package is provided. The mechanism includes a chassis, a package holder, a cutting mechanism configured to cut a sidewall of an individual container in the array-type pill package, a dispensing mechanism configured to receive and dispense a cut individual container therein; and a control system configured to control a relative position of the cutting mechanism and the package holder along at least two degrees of freedom. A cutting mechanism is also provided. The cutting mechanism includes a cutter base movably mounted to the chassis, a cutting tool mounted to the cutting base and adapted for cutting a side wall of an individual container adjacent a common top surface of an array-type pill package to entirely detach individual container from the array-type package; and motor operatively to displace the cutting tool along a plane generally tangent to the package holder.