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340B Program Policies and Procedures

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The document outlines the policies and procedures for Piedmont Access to Health Services, Inc. (PATHS) regarding its participation in the Federal 340B Drug Pricing Program. It details the operational framework to ensure compliance with 340B regulations, including eligibility requirements, record-keeping, and audit processes. The document also specifies the roles of staff responsible for managing the program, the systems used for tracking and reporting, and guidelines for drug procurement and pricing. Overall, it serves as a comprehensive guide to maintain integrity and compliance within PATHS' 340B operations.

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How does a hospital get 340B pricing?

Section 340B requires pharmaceutical manufacturers that participate in the Medicaid and Medicare Part B programs to enter into a contract with the Secretary of Health and Human Services (HHS) requiring them, among other things, to give specified discounts on covered outpatient drugs purchased by certain covered

How do hospitals profit from 340B?

Consequently, these providers can generate 340B profits by pocketing the difference between the discounted price that they paid for the drugs and the higher reimbursement paid by insurers and patients.

What is the simple explanation of 340B?

Section 340B of the Public Health Service Act requires pharmaceutical manufacturers to provide discounts to eligible safety-net providers in exchange for having their drugs covered under Medicaid and Medicare Part B.

What is the new 340B legislation?

The 340B Program enables covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services. Manufacturers participating in Medicaid agree to provide outpatient drugs to covered entities at significantly reduced prices.

What are the rules for 340B?

Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations that care for many uninsured and low-income patients.

How do 340B contract pharmacies make money?

There is no clear evidence that 340B hospitals and their contract pharmacies use 340B profits to help lower costs for patients. Rather, contract pharmacies and hospitals generate profits sometimes by charging vulnerable patients the full non-340B price for their prescriptions.

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