340b… Whither thou Goest?

A significant number of specialty pharmacies have contracted as a 340b dispensing pharmacy often for multiple ‘program eligible’ hospitals. As most know, manufacturers have recently been on the offensive with these programs citing numerous instances of double dipping discounts, providing product to ineligible patients, inaccurate data reporting, and more. With the emergence of hospital owned and operated pharmacies, the challenge of tracking and tracing ‘eligible’ vs. ‘ineligible’ discounts has exacerbated.

As noted in the article below, the already complex process of managing 340B pharmacies has become even more challenging with 16 drug manufacturers now restricting discounts to contracted pharmacies, including some extending to federal grantees.

But the industry is not waiting silently for relief. The AHA, 340B Health, America’s Essential Hospitals, Association of American Medical Colleges, and Children’s Hospital Association recently filed an opinion with the U.S. Courts of Appeals to require drug companies to “fulfill their legal obligations to provide 340B discounted drugs to eligible hospitals and health systems, regardless of whether the drugs are dispensed on site or through contract pharmacies.” They also claim that more than half of 340B hospitals report they do not operate in-house retail pharmacies, and only one in five have their own specialty pharmacy, making contract pharmacies “a necessary and beneficial component of the 340B program.”

Specialty pharmacies working the 340b segment may garner useful insights on the topic by reviewing a survey recently released from the health center pharmacy perspective. It was conducted in the first quarter of 2022 and gathered responses from 75 key leaders, influencers, and decision-makers in health center 340B programs.

CLICK HERE to download the full report

New Study Provides Insights into 340B Pharmacies Amid Market Upheaval

AMARILLO, Texas, May 18, 2022 /PRNewswire/ — The already complex process of managing 340B pharmacies has become even more challenging for Community Health Centers (CHCs) with 16 drug manufacturers restricting discounts to contracted pharmacies, including some extending to federal grantees, and a widening shortage of pharmacy staff. The federal 340B drug discount program allows CHCs, among other safety net providers, to realize savings on drug costs from mandated discounts from manufacturers. The 340B program has experienced seismic changes in the past two years as manufacturers increasingly restrict access to the discounts and clarity on the legality of the restrictions remains tied up in courts.

CHCs’ 340B pain points are highlighted in a new report released today by Maxor 340B, an industry leader in pharmacy management and comprehensive 340B solutions. The report, titled “The State of Community Health Center Pharmacies Today,” is based on an independent survey of CHC leaders that are actively involved in managing their organization’s 340B programs.

Healthcare consultancy Sage Growth Partners conducted the survey to look at pharmacy-related challenges, needs, preferences and plans of CHCs. The report reveals what CHCs want from their 340B pharmacy partners, as well as their preferred vendor characteristics.

“This survey confirms that managing pharmacies and 340B programs has become even more complex and challenging in the past few years, due to the impact of the pandemic, changing compliance requirements, and uncertainty over participation by drug manufacturers. CHCs may increasingly look to outside partners to help them manage this complexity,” said Mike Ellis, CEO of Maxor National Pharmacy Services. “CHC’s are seeking comprehensive solutions, good service, easy to use technology, transparent and innovative fee structures, compliance expertise, and excellent overall value.”

“Our research shows that those who can offer a transparent and responsive partnership to help CHC leaders simplify 340B programs will have the upper hand going forward,” said Dan D’Orazio, CEO, Sage Growth Partners.

Highlights from the survey include: ” [open link above to read the full article]


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