340B Contract Pharmacy Services

General Description and Overview

The 340B Program offers eligible safety net health care providers access to low-cost medications, which allows them to expand the type and volume of care they provide to the most vulnerable patient populations. The 340B Drug Pricing Program requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities at significantly reduced prices.

Community pharmacies are encouraged to reach out to covered entities within their communities. Eligible health care organizations/covered entities are defined in statute and include HRSA-supported health centers and look-alikes, Ryan White clinics and State AIDS Drug Assistance programs, Medicare/Medicaid Disproportionate Share Hospitals, children's hospitals, and other safety net providers. See the full list of eligible organizations/covered entities here.

Today, there are approximately 17,000 health care facilities eligible to participate in the 340B program, enabling them to stretch scarce resources, reach more eligible patients, and to provide more comprehensive services. Many of these facilities are located in rural America.

Covered Entities may establish agreements either through multiple contracts with individual pharmacies or through a single contract with a chain pharmacy that identifies the specific pharmacy locations that will support the Covered Entity's 340B program. Based on the regulatory and legislative requirements necessary to minimize fraud and abuse within the program, contract pharmacies may be compensated at a higher dispensing rate to meet such standards and provide indigent care.

Pharmacist Resources

  • Health Resources and Services Administration Office of Pharmacy Affairs - The Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services, is the primary federal agency charged with improving access to health care services for people who are uninsured, isolated or medically vulnerable. The Office of Pharmacy Affairs (OPA) is the arm of HRSA that administers the 340B drug discount program.

  • 340B Prime Vendor Program - The 340B Prime Vendor Program (PVP) is managed by Apexus through a contract with HRSA. Apexus is responsible for securing sub-ceiling discounts on outpatient drug purchases and discounts on other pharmacy-related products and services for participating public hospitals, community health centers, and other safety net health care providers.

  • National Rural Health Association - authorized in 1977 for the purpose of improving access to care for Medicare and Medicaid beneficiaries.

Supply Companies