# 340B Program * **Definition:** The 340B Program is a U.S. federal government program that requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations and covered entities at significantly reduced prices, aimed at enabling these entities to stretch scarce federal resources, reach more eligible patients, and provide more comprehensive services. * **Taxonomy:** Healthcare Topics / 340B Program ## News * Selected news on the topic of **340B Program**, for healthcare technology leaders * 667 news items are in the system for this topic * Posts have been filtered for tech and healthcare-related keywords | Date | Title | Source | | --- | --- | --- | | 5/7/2025 | [**This CFO encourages leaders to 'think outside the box' to combat labor shortages**](https://www.beckershospitalreview.com/finance/this-cfo-encourages-leaders-to-think-outside-the-box-to-combat-labor-shortages/) | [[Beckers Hospital Review]] | | 4/25/2025 | [**Can hospitals 'weather the storms'?**](https://www.beckershospitalreview.com/hospital-management-administration/can-hospitals-weather-the-storms/) | [[Beckers Hospital Review]] | | 4/25/2025 | [**Closing Crozer Health hospitals in PA could harm nearby businesses, owners say**](https://www.healthleadersmedia.com/innovation/closing-crozer-health-hospitals-pa-could-harm-nearby-businesses-owners-say) | [[HealthLeaders Media]] | | 4/7/2025 | [**Op-Ed: Community oncologists need policymaker support to stay independent**](https://www.aol.com/op-ed-community-oncologists-policymaker-163800013.html) | [[AOL]] | | 2/14/2025 | [**Reaction mixed to RFK Jr.'s confirmation as HHS secretary - Healthcare Finance News**](https://www.healthcarefinancenews.com/news/reaction-mixed-rfk-jrs-confirmation-hhs-secretary) | [[Healthcare Finance]] | | 1/28/2025 | [**Protecting the 340B program: A vital step toward a healthier nation**](https://www.beckershospitalreview.com/pharmacy/protecting-the-340b-program-a-vital-step-toward-a-healthier-nation.html) | [[Beckers Hospital Review]] | | 1/23/2025 | [**The Future of Compliance Software in Healthcare: Why Integration and Innovation are Key**](https://www.beckershospitalreview.com/innovation/the-future-of-compliance-software-in-healthcare-why-integration-and-innovation-are-key.html) | [[Beckers Hospital Review]] | | 12/23/2024 | [**What's on pharmacy leaders' radars for 2025**](https://www.beckershospitalreview.com/pharmacy/what-s-on-pharmacy-leaders-radars-for-2025.html) | [[Beckers Hospital Review]] | | 12/20/2024 | [**Lessons in Value From Other Specialties**](https://www.ajmc.com/view/lessons-in-value-from-other-specialties) | [[AJMC]] | | 12/14/2024 | [**ICYMI: Highlights From COA 2024**](https://www.ajmc.com/view/icymi-highlights-from-coa-2024) | [[AJMC]] | | 12/12/2024 | [**Generative AI, Cybersecurity Among Top Risks for Healthcare Provider Organizations in ...**](https://finance.yahoo.com/news/generative-ai-cybersecurity-among-top-160000151.html) | [[Yahoo Finance]] | | 12/12/2024 | [**Generative AI, Cybersecurity Among Top Risks for Healthcare Provider Organizations in ...**](https://www.businesswire.com/news/home/20241212024344/en/Generative-AI-Cybersecurity-Among-Top-Risks-for-Healthcare-Provider-Organizations-in-2025-Kodiak-Solutions-Finds) | [[Business Wire]] | | 12/12/2024 | [**Generative AI, Cybersecurity Among Top Risks for Healthcare Provider Organizations in 2025, Kodiak Solutions Finds**](http://www.businesswire.com/news/home/20241212024344/en/Generative-AI-Cybersecurity-Among-Top-Risks-for-Healthcare-Provider-Organizations-in-2025-Kodiak-Solutions-Finds/?feedref=JjAwJuNHiystnCoBq_hl-RLXHJgazfQJNuOVHefdHP-D8R-QU5o2AvY8bhI9uvWSD8DYIYv4TIC1g1u0AKcacnnViVjtb72bOP4-4nHK5ieT3WxPE8m_kWI77F87CseT) | [[Business Wire]] | | 12/12/2024 | [**Generative AI, Cybersecurity Among Top Risks for Healthcare Provider Organizations in 2025, Kodiak Solutions Finds**](http://www.businesswire.com/news/home/20241212024344/en/Generative-AI-Cybersecurity-Among-Top-Risks-for-Healthcare-Provider-Organizations-in-2025-Kodiak-Solutions-Finds/?feedref=JjAwJuNHiystnCoBq_hl-Q-tiwWZwkcswR1UZtV7eGe24xL9TZOyQUMS3J72mJlQ7fxFuNFTHSunhvli30RlBNXya2izy9YOgHlBiZQk2LOzmn6JePCpHPCiYGaEx4DL1Rq8pNwkf3AarimpDzQGuQ==) | [[Business Wire]] | | 10/25/2024 | [**Bluesight Expands Capabilities Through Acquisition of Sectyr**](https://www.healthcareittoday.com/2024/10/25/bluesight-expands-capabilities-through-acquisition-of-sectyr/) | [[Healthcare IT Today]] | | 10/17/2024 | [**Bluesight Expands Capabilities Through Acquisition of Sectyr - PR Newswire**](https://www.prnewswire.com/news-releases/bluesight-expands-capabilities-through-acquisition-of-sectyr-302278582.html) | [[PR Newswire]] | | 10/17/2024 | [**Bluesight Expands Capabilities Through Acquisition of Sectyr - Yahoo Finance**](https://finance.yahoo.com/news/bluesight-expands-capabilities-acquisition-sectyr-130000364.html) | [[Yahoo Finance]] | | 9/6/2024 | [**HHS OCR Withdraws Tracking Technologies Appeal in AHA v. Becerra**](https://www.quarles.com/newsroom/publications/hhs-ocr-withdraws-tracking-technologies-appeal-in-aha-v-becerra) | quarles.com | | 8/27/2024 | [**Developments in Cybersecurity Law for Healthcare - Quarles & Brady LLP**](https://www.quarles.com/newsroom/events/developments-in-cybersecurity-law-for-healthcare) | quarles.com | | 7/31/2024 | [**Perspectives on Changes to Agency Deference for Pharmacy Law (Chevron Decision)**](https://www.quarles.com/newsroom/events/perspectives-on-changes-to-agency-deference-for-pharmacy-law-chevron-decision) | quarles.com | | 7/16/2024 | [**Richie Davis Quoted in 340B Report on How SCOTUS “Chevron” Decision Could Affect ... - Quarles**](https://www.quarles.com/newsroom/news/richie-davis-quoted-in-340b-report-on-how-scotus-chevron-decision-could-affect-hrsa-and-340b-regulation) | quarles.com | | 7/11/2024 | [**Randall Fearnow Named to Center for Disability and Elder Law's Board of Directors**](https://www.quarles.com/newsroom/news/randall-fearnow-named-to-center-for-disability-and-elder-laws-board-of-directors) | quarles.com | | 7/2/2024 | [**Three Quarles Health & Life Sciences Attorneys Appointed to Leadership Positions of ...**](https://www.quarles.com/newsroom/news/three-quarles-health-life-sciences-attorneys-appointed-to-leadership-positions-of-ahlas-practice-groups) | quarles.com | | 6/26/2024 | [**Joanne Buser Named to San Diego Business Journal's “Women of Influence in Law”**](https://www.quarles.com/newsroom/news/joanne-buser-named-to-san-diego-business-journals-women-of-influence-in-law) | quarles.com | | 7/6/2022 | [**Hospitals and for-profit PBMs are diverting billions in 340B savings from patients in need**](https://www.statnews.com/2022/07/07/for-profit-pbms-diverting-billions-340b-savings/) | [[STAT]] | ## Topic Overview (Some LLM-derived content — please confirm with above primary sources) ### Key Players - **Compass340B**: A leading provider of comprehensive 340B program consulting and management solutions, helping healthcare organizations optimize their programs. - **Health Resources and Services Administration (HRSA)**: The federal agency overseeing the 340B Program, which has opposed recent changes proposed by pharmaceutical companies, asserting they violate the program's requirements. - **Gavin Magaha**: A healthcare leader discussing the challenges and necessary reforms of the 340B program. - **Centers for Medicare & Medicaid Services (CMS)**: Government agency implementing new payment requirements affecting the 340B Program. - **Johnson & Johnson**: A pharmaceutical company implementing a new rebate model for its drugs, impacting the 340B program and raising concerns among healthcare providers. - **Kalderos**: A healthcare technology company aiming to address issues in the U.S. healthcare system, particularly related to the 340B program. - **Chip Kahn**: CEO of the Federation of American Hospitals, advocating for the 340B program's role in lowering patient costs. - **Sanofi**: A pharmaceutical company that proposed a new credit model for 340B entities but faced legal challenges from HRSA. - **Bluesight**: A healthcare technology company enhancing compliance solutions for the 340B Program through acquisitions. - **Proximity**: An intelligent automation platform designed to maximize 340B drug discount revenue for healthcare providers, simplifying program management and compliance. - **Craneware Group**: A company providing independent support for 340B Covered Entities, focusing on maximizing program benefits and ensuring compliance. - **American Hospital Association (AHA)**: A key advocacy group representing hospitals that has called for federal intervention against pharmaceutical companies' changes to the 340B Program. - **Bristol Myers Squibb**: A pharmaceutical company involved in lawsuits concerning the 340B program and its rebate plans. - **Microsoft**: Partnering with Craneware to enhance real-time data processing and analysis for improved compliance and financial outcomes in 340B hospitals. ### Partnerships and Collaborations - **HealthTrust Performance Group**: Hosted a summit to discuss the 340B Program, facilitating connections among hospitals, manufacturers, and wholesalers. - **Craneware and Bluesight**: This collaboration improves medication purchasing insights for hospitals, particularly benefiting 340B hospitals. - **Bluesight and Sectyr**: Bluesight acquired Sectyr to improve compliance and audit management solutions for the 340B Program. - **ProxsysRx and Conway Medical Center**: ProxsysRx has partnered with Conway Medical Center to build and manage an on-campus specialty pharmacy, enhancing access to affordable medications through the 340B program. - **Craneware and Microsoft**: This partnership enhances real-time data processing for compliance and financial outcomes in 340B hospitals. - **American Hospital Association and Minnesota Law Coalition**: A coalition led by AHA filed an amicus brief supporting Minnesota's law that protects the 340B drug discount program against pharmaceutical companies' restrictions. - **Bluesight**: Developed a unified platform for healthcare compliance, enhancing capabilities in 340B compliance through acquisitions like Medacist and Sectyr. - **MultiCare Health System**: Partnered with QuicksortRx to analyze drug spending data, leading to significant cost savings. - **Baptist Health South Florida and Ascension**: Investing in pharmacy operations to enhance efficiency and patient care, utilizing AI and analytics. - **COA and Safety-Net Hospitals**: Collaborating to advocate for legislative reforms and address challenges in oncology care, particularly related to the 340B program. - **Proximity and Healthcare Providers**: Partnering with healthcare organizations to streamline 340B program administration and improve compliance. - **Nuvem and Parthenon Capital**: Nuvem is backed by Parthenon Capital, focusing on growth in the healthcare technology sector. ### Innovations, Trends, and Initiatives - **340B ACCESS Act of 2024**: Proposed legislation aimed at reforming the 340B Program to enhance transparency and eligibility standards. - **340B Program Modernization**: Calls for modernization through advanced technology and data analytics to improve efficiencies and reduce waste. - **Rural 340B Access Act**: Proposed legislation aimed at enabling rural emergency hospitals to access federal drug discount programs to alleviate financial pressures. - **SUSTAIN 340B Act**: Bipartisan legislation introduced to codify the 340B Program's functions into federal law. - **Legislative Reforms**: Calls for urgent reforms to the 340B program to prevent potential profiteering and ensure it meets its original intent of supporting safety-net hospitals. - **Medicare Transaction Facilitator Data Module**: CMS's initiative to improve claims data exchange related to the 340B Program. - **Rebate Model Proposals**: Johnson & Johnson and other pharmaceutical companies have proposed shifting from upfront discounts to a rebate model for drugs under the 340B Program, which has sparked legal challenges and opposition from healthcare providers. - **Proximity's Automation Platform**: Launched with $3 million in seed funding, this platform aims to enhance technology for healthcare providers to secure essential revenue from the 340B program. - **Epic Willow Inventory**: St. Luke’s Health System is implementing this technology to improve inventory management and patient care, particularly in relation to the 340B program. - **Data Analytics**: Health systems are leveraging claims data and predictive analytics to optimize pharmacy programs and ensure compliance with 340B requirements. - **Credit Models and Rebate Plans**: Pharmaceutical companies are exploring new credit models and rebate plans, leading to legal disputes with HRSA. - **AI in Healthcare**: AI-driven models are being explored to automate processes and improve efficiency in specialty pharmacy operations, including compliance with 340B eligibility. - **AI and Automation in Pharmacy**: Healthcare systems are leveraging AI and automation to optimize pharmacy operations and improve patient care. - **Compliance Technology Development**: Bluesight's acquisition of Sectyr reflects a trend towards enhancing compliance and audit management technologies to support healthcare organizations in navigating the complexities of the 340B Program. - **Minnesota's 340B Contract Pharmacy Law**: This law prohibits drug manufacturers from restricting access to medications for hospitals serving uninsured populations, highlighting ongoing efforts to protect the integrity of the 340B Program. - **Sanofi's 340B Credit Model**: A new model requiring covered entities to verify medication eligibility for discounts, aimed at reducing fraud and ensuring compliance. - **Arkansas 340B Drug Pricing Law**: A state law that prohibits drugmakers from restricting discounts for providers using contract pharmacies, upheld by the U.S. Supreme Court. ### Challenges and Concerns - **Access to Medications**: Concerns that changes to the 340B program could limit access to affordable medications for vulnerable populations. - **Transparency Issues**: There are significant concerns regarding the transparency and effectiveness of the 340B program, with calls for better regulation and oversight. - **Market Power Shift**: The 340B program has shifted benefits towards wealthier areas, raising concerns about its impact on competition and access to care for low-income populations. - **Compliance Complexity**: The outdated structure of the 340B program has led to compliance issues that undermine its purpose of aiding vulnerable patients. - **Legal Challenges**: Pharmaceutical companies are challenging the expansion of the 340B program, suggesting alternative rebate models. - **Duplicate Discounts**: Concerns about potential duplicate discounts arising from the interaction between the 340B Program and the Maximum Fair Price under the Inflation Reduction Act. - **Financial Stability of Hospitals**: Potential financial burdens on hospitals due to changes in the 340B program and rising operational costs. - **Geographical Misalignment**: Reports indicate that many 340B entities are expanding into wealthier areas rather than focusing on underserved communities, undermining the program's original goals. - **Misuse of Savings**: Concerns that some hospitals may not reinvest 340B savings into patient care, leading to exploitation of the program. - **Supreme Court's Chevron Decision**: The ruling may limit deference to HRSA's guidance, potentially complicating the oversight of the 340B program and raising concerns about its future. - **Johnson & Johnson's Rebate Model**: The shift from direct discounts to a rebate application process for certain drugs could negatively impact safety-net hospitals and their ability to serve low-income patients. - **Compliance Issues**: Challenges for manufacturers in identifying eligible drugs and claims, leading to potential financial liabilities. - **Legal Disputes**: Ongoing lawsuits between pharmaceutical companies and HRSA regarding the legality of rebate plans and credit models. - **Financial Burdens on Hospitals**: Criticism of Johnson & Johnson's proposed rebate model for potentially increasing costs for hospitals. - **Impact on Patient Care**: Changes to the 340B Program, particularly the shift to a rebate model, could delay access to medications for low-income patients, prompting concerns from hospital leaders about the potential impact on patient care. - **Compliance Risks**: Healthcare organizations face increasing compliance risks related to the 340B Program, with potential financial penalties for non-compliance, necessitating robust internal auditing and compliance management. - **Oversight and Compliance Issues**: The 340B program faces criticism for lacking meaningful oversight, leading to potential abuses such as drug diversion and duplicate discounts. - **Financial Pressures on Providers**: Healthcare organizations are under increasing financial pressure, making it essential to optimize the pharmacy revenue cycle to improve cash flow and compliance.