The pathway to becoming a 340B pharmacy
Many independent pharmacies avoid 340B participation due to the complexity it can present and the resources it requires to manage. However, by participating in a 340B program, independent pharmacies can help increase access to affordable medications, strengthen the pharmacy’s relationship with its community and provide an alternative revenue stream.
What exactly is a 340B program?
The 340B Program enables covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.
Typically, pharmacy services provided by a 340B-covered entity may be provided either through an “in-house” pharmacy or through contract with an outside pharmacy, including a community pharmacy. In other words, community pharmacies are able to contract with 340B-covered entities and to dispense prescription medication to qualified patients. In that regard, a community pharmacy might provide real value to a patient seeking access to prescription medication and also add an income stream to its existing business model.
Today, there are approximately 17,000 care facilities eligible to participate in the 340B program, enabling them to stretch scarce resources, reach more eligible patients, and to provide more comprehensive services. Many of these facilities are located in rural America.
How can you get started?
Nick Secrest, Vice President of RxOwnership North Central Region, says, “I would encourage community pharmacy owners to reach out to the health systems in town and see if the 340B program is something you can partner with them on. It gives you a great opportunity to be more profitable and strengthen the relationship with the health system.”
The pathway to becoming a 340B contract pharmacy can be complex and often confusing. However, if implemented, it could be an additional revenue stream to help keep your pharmacy profitable. Secrest comments, “If you are an independent pharmacy and are interested in learning more about potentially partnering with the health system in your community, please reach out to the RxOwnership team. We can help you work through the process to see if this opportunity is available and beneficial for your pharmacy.”
Interested in learning more?