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340B Drug Pricing: A Case Study

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With the skyrocketing costs of the advanced medical technology and specialty pharmaceuticals, decreasing insurance reimbursement and high levels of uninsured patients, healthcare providers are required to be more cost effective in delivering their services. Some health care facilities operate under very tight budget. In 1992, Congress established 340B drug pricing program in order to provide discounted drugs for covered entities, such as “high-Medicaid public and private nonprofit hospitals, community health centers, and other safety net providers”1, to help those facilities to deliver pharmacy services to those underinsured or uninsured outpatient populations. This program is based on the agreement between the Secretary of …show more content…

In addition, the hospital must not purchase outpatient drugs under a group purchasing arrangement. St. Anthony hospital is considered as a DSH and is eligible to participate in 340B program. To purchase 340B drugs at or below 340B ceiling prices, eligible covered entities must register and be enrolled with the 340B program annually and comply with all 340B Program requirements. New registrations are accepted October 1, January 1, April 1 and July 1. Even though 340 B program allows covered entities ‘‘to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services’’ however, there are lots of controversies about how to regulate this program effectively. On one side, federal and state government were accused for lack of proper guidance on Medicaid outpatient drug billings of 340B

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