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The 340B Process: How Hospitals Are able to Benefit

The 340B discount drug program can be highly beneficial for hospitals, especially ones that have a large number of outpatient pharmacy prescriptions. 340B eligible hospitals should look for ways to leverage their outpatient pharmacy operations to maximize the program’s benefits.

The above diagram shows a simple diagram of the basic process of how this benefit works from a savings and profit perspective.

Step 1: Manufacturer/Distributor sells drugs to hospital at discount

Step 2: Hospital gives medication to patient (only outpatients)

Step 3: Hospital receives full insurance rate for Rx

Step 4: Hospital keeps the difference as profit

The 340B discount drug program can help eligible hospitals and organization save money on expensive specialty pharmaceuticals. Find out if your healthcare organization meets the qualifications for a 340B hospital and start taking advantage of the opportunities the program has to offer.