The Market Advantage Of The 340B Program

A select group of organizations in the health and human service field have a distinct market advantage – they are able to purchase medications for consumers at a greatly reduced price through the 340B Drug Pricing Program (340B Program). As we move towards more value-based reimbursement that rewards the "total cost" of care, this subsidy program will be even more valuable.

So how does the 340B program work? Eligible organizations are able to purchase the drugs from manufacturers at a discounted price, which is calculated using a formula based on the average manufacturer’s price (AMP) and unit rebate amount . . .