How to Leverage the 340B Opportunity: What you need to know
Post Date: Feb 8th 2016
Are you reaping the significant opportunities associated with the 340B Drug Pricing Program (340B)?
For the average 350-bed eligible hospital, 340B offers $1-$6 million annually in savings, which can mean the difference between staying open or closing.
But adherence to this is continually evolving and the federal law can be complicated. As the industry heads into 2016, we’re on a mission to share insight on the coming changes that can impact key areas of compliance—namely duplicate discounts, diversion and group purchasing organization (GPO) exclusions.
First passed as part of the Veterans Health Care Act of 1992, 340B is a federal law allowing hospitals and health systems to buy qualifying pharmaceuticals at greatly reduced prices. Its goal is to ensure that underserved patients have access to affordable medications.
340B has become an indispensable resource for many hospitals and health systems on the quest to effectively serving all patient populations. By enhancing access to medications and clinical care offerings—as well as bolstering financial stability—340B is a win-win for patients and providers alike.
340B: What’s ahead
In truth, 340B compliance can be tricky, especially for multi-hospital systems in which some facilities are 340B eligible and some are not. That’s one reason why the Health Resources Services Administration (HRSA)—the 340B program overseer—published the “mega-guidance” on 340B rules last August for review and will be released upon final revisions.
The new guidance should address recordkeeping and the movement of discounted drugs within an Enterprise. With the addition of these guidelines, issues associated with the 340B program – including diversion, duplicate discounts, GPO exclusions, etc. – will be more defined for auditing purposes, a key compliance concern for many hospital systems.
340B and your hospital
At Aesynt, we equip our partners with the knowledge and solutions needed to address 340B changes as they unfold. For example, multi-hospital systems leveraging Aesynt’s Enterprise Medication Manager™ for medication supply chain management are well positioned to comply with the statute. Whereas many health systems opt to separate 340B facilities from their centralized supply chain operations because of compliance challenges, Enterprise Medication Manager offers these facilities a framework to integrate all hospitals. In fact, our enterprise-wide pharmacy supply chain solution allows hospitals to categorize use and distribution of 340B eligible drugs, ensuring compliance and laying the foundation for outcomes improvement.
Through this approach, our partners can capitalize on the 340B opportunity and optimize the pharmacy supply chain.
Forward-looking innovation keeps our partners one step ahead of industry regulations change and is part of our ongoing commitment to perfecting medication management.
For more information about Aesynt’s suite of enterprise medication management solutions, visit www.aesynt.com/enterprise.
Have a question or comment regarding upcoming changes to 340B, or strategies to respond? We’d love to hear from you: You can leave us a comment here, or chat with us on Facebook, Twitter (@aesynt) or LinkedIn.