340B RESOURCE CENTER

Through the 340B or Disproportionate Share Hospital (DSH) Drug Pricing Program, certain federally funded grantees and other safety net health care providers may purchase prescription medication at significantly reduced prices. The 340B Drug Pricing Program resulted from enactment of Public Law 102-585, the Veterans Health Care Act of 1992, which is codified as Section 340B of the Public Health Service Act. Section 340B limits the cost of covered outpatient drugs to certain federal grantees, federally-qualified health center look-alikes and qualified disproportionate share hospitals. Significant savings on pharmaceuticals may be seen by those entities that participate in this program. You may be confused by the terms “PHS Pricing,” “340B Pricing,” and “602 Pricing.” It is the same program and the same discount. You may also hear the terms “ceiling price” and “discount price.” Here again, they are the same. Your hospital may qualify for this program if you meet certain criteria outlined below.You may click here to determine whether your hospital is eligible as a DSH. Upon completion of eligibility verification and enrolment with the DHHS Office of Pharmacy Affairs, you may sign up your hospital with a designated program such as the Prime Vendor Program in order to receive 340 B pricing. This program is free and voluntary to facilities that are already 340B eligible. Learn how to participate.

The Health Resources and Services Administration is now enrolling organizations that are eligible to register into the 340B Drug Pricing Program with the passing of the Affordable Care Act. Section 7101 of the Affordable Care Act (ACA) expanded the definition of covered entities that are now eligible to participate in the 340B Program. Under the provision, children’s hospitals, free-standing cancer centers, critical access hospitals, sole community hospitals and rural referral centers are now eligible to participate in the Program. Children’s Hospitals had been previously enrolled under a provision of the Social Security Act (SSA) amended by the Deficit Reduction Act. Click here for a detailed description of covered entities.

The ceiling medication prices available to 340B hospitals are significantly lower than GPO prices used by most hospitals. Each individual hospital is responsible for keeping track of medication usage and ordering through the 340B program. This is a cumbersome process if performed manually. An alternative is for hospitals to purchase and implement a 340B Split-Billing Software offered by several vendors. Click here for a list of Split-Billing Vendors.

Getting Started

Office of Pharmacy Affairs

A component of the Health Resources and Services Administration Healthcare Systems Bureau, the Office of Pharmacy Affairs has three primary functions:

  • Administration of the 340B Drug Pricing Program, through which certain federally funded grantees and other safety net health care providers may purchase prescription medication at significantly reduced prices.
  • Development of innovative pharmacy services models and technical assistance.
  • Service as a federal resource about pharmacy.

In all of its activities, OPA emphasizes the importance of comprehensive pharmacy services being an integral part of primary health care. Comprehensive pharmacy services include patient access to affordable pharmaceuticals, application of “best practices” and efficient pharmacy management and the application of systems that improve patient outcomes through safe and effective medication use.

Office of Pharmacy Affairs
5600 Fishers Lane,
Parklawn Building, Mail Stop 10C-03
Rockville, MD 20857
Office of Pharmacy Affairs (OPA) Website: http://www.hrsa.gov/opa/

Forms & Letters

Past Webinars and Conference Information

Please click here for additional information on 340B http://www.hrsa.gov/opa/introduction.htm.

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