The Contract Pharmacy Process for 340B Hospitals
340B Eligible Hospitals should look for ways to leverage their outpatient pharmacy operations to maximize the programs `benefits.
One way to do this is to utilize contract pharmacy arrangements.
The above diagram shows a simple diagram of the basic process of how this benefit works from a savings and profit perspective.
Step 1: Hospital purchases drug at 340B price from wholesaler/manufacturer
Step 2: Hospital has drug delivered directly to contract pharmacy
Step 3: Patient picks up their prescription from the contract pharmacy
Step 4: Pharmacy collects co-pay and bills patients insurance
Step 5: Pharmacy receives full insurance rate for Rx
Step 6: Pharmacy keeps a portion of the payment as a dispensing fee
Step 7: Pharmacy sends remainder of reimbursement to hospital
Step 8: Hospital keeps remaining amount as profit (after cost of drug and dispensing fee)