WHAT IS 340B?
As healthcare costs continue to rise in the United States, hospitals and healthcare providers are always looking for ways to maximize revenue while still providing quality care to patients. One way that many healthcare providers are able to control costs and increase revenue is by participating in the 340B drug pricing program. However, to participate in this program, it is essential for healthcare providers to ensure that they are fully compliant with all program requirements.
The 340B drug pricing program was established by Congress in 1992 with the aim of providing eligible healthcare providers with discounted prices on drug purchases. The program is designed to help healthcare providers that serve large numbers of uninsured and low-income patients by allowing them to purchase drugs at significantly reduced prices. This enables healthcare providers to stretch their resources further, allowing them to provide much-needed care to underserved populations.
To be eligible to participate in the program, healthcare providers must meet certain criteria. These organizations must be public or non-profit and must serve a large number of uninsured, low-income, or under-insured patients. Once enrolled, healthcare providers are able to purchase drugs from participating manufacturers at a discount.
However, being part of the 340B drug pricing program is not a free pass for healthcare providers to purchase drugs at reduced prices without providing the necessary care to eligible patients. To ensure compliance, healthcare providers must adhere to strict program requirements, including designated record-keeping, staff training, and reporting. For example, eligible healthcare providers must ensure that they only use 340B drugs for eligible patients, and not for other purposes (such as resale or charity care). Additionally, healthcare providers must also ensure that they properly document each drug purchase and use, in accordance with federal regulations.
Maintaining compliance in the 340B drug pricing program is essential for healthcare providers, as the consequences of non-compliance can be severe. For example, healthcare providers that fail to adhere to program requirements may face financial penalties, loss of program eligibility, and other legal issues.
To ensure compliance with the 340B drug pricing program, healthcare providers should consider taking proactive measures to maintain compliance, such as regular staff training, thorough record-keeping, regular audits, and risk assessments. Additionally, healthcare providers should consider working with an experienced compliance advisor who can help them navigate the complex requirements of the program and avoid non-compliance.
In conclusion, the 340B drug pricing program is an essential resource for many healthcare providers and can be an effective way to control costs and increase revenue. However, to participate in the program, healthcare providers must ensure that they are fully compliant with all program requirements. By taking proactive measures to maintain compliance, healthcare providers can ensure that they maximize the benefits of the 340B program while still providing quality care to their patients.