WHAT is a 340B hospital?

The 340B Program enables covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services (source). Manufacturers participating in Medicaid agree to provide outpatient drugs to covered entities at significantly reduced prices.

HOW do hospitals qualify for 340B pricing?

All hospitals participating in 340B must have a minimum disproportionate share (DSH) adjustment percentage (except for critical access hospitals, or CAHs) and meet additional criteria. The DSH adjustment percentage is based on the share of a hospital’s inpatients who are Medicaid and low-income Medicare patients.