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What’s All the Fuss About 340B?

The 340B Program was created to provide medicine to patients who might otherwise not be able to afford it – but drug manufacturers see its current, expansive state as unsustainable. What’s the balance between discounted drugs and patient access, and will the Supreme Court end up with the final say?

What Is 340B?

Named after section 340B of the Public Health Service Act, the 340B Program was established by an act of Congress in 1992. The intent of 340B was to provide price relief to hospitals that disproportionately serve low-income populations:

• Disproportionate share hospitals (DSHs)

• Children’s hospitals and cancer hospitals exempt from the Medicare prospective payment system

• Sole community hospitals

• Rural referral centers

• Critical access hospitals

The program serves these types of hospitals and extends to their “child” sites, which include any “clinic/department/offsite facility that is eligible to participate in the 340B Program because it is an integral part of a hospital that participates in the program, as evidenced by the fact that it is reimbursable on the hospital’s Medicare cost report.” Read more >

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