340B Insight

Why Hospitals Need a 340B Purchasing Strategy


Listen Later

Health systems eligible for 340B savings must strike a balance by staying compliant with purchasing rules while also maximizing the amount of eligible savings they can obtain to invest in patient care. Angela Campitelli, the director of the pharmacy 340B program at MetroHealth System in Cleveland, explains how a hospital system such as hers implements a purchasing strategy that achieves that balance.


Following rules for 340B purchases


Disproportionate share (DSH) hospitals, children’s hospitals, and cancer hospitals are subject to a group purchasing organization (GPO) prohibition that bars them from buying covered outpatient drugs on GPO accounts. That requires maintaining a purchasing system that involves buying drugs at wholesale acquisition cost (WAC) for neutral inventory and then replenishing at 340B, WAC, or GPO pricing depending on how the drug is used.


How the cycle can break down


Purchasing drugs outside of the outlined processes could cause violations of the GPO prohibition or other 340B rules, which could lead to sanctions that might include losing eligibility for 340B. That is why health systems such as MetroHealth use staff education, regular auditing, and other safeguards to ensure they are purchasing and replenishing drugs on the correct accounts.


Investments in the strategy


Campitelli recommends 340B hospital teams bring their senior leadership on board to invest in auditing and other resources to ensure a strong purchasing strategy. Such investments will help avoid potential rule violations while ensuring that hospitals are not walking away from 340B savings to which they are entitled.


Resources

  1. 340B Health Appeals Rebate Ruling; Federal Court Agrees to Fast-Track Drugmaker Appeals
...more
View all episodesView all episodes
Download on the App Store

340B InsightBy 340B Health

  • 4.9
  • 4.9
  • 4.9
  • 4.9
  • 4.9

4.9

21 ratings


More shows like 340B Insight

View all
WSJ Your Money Briefing by The Wall Street Journal

WSJ Your Money Briefing

1,711 Listeners

The NPR Politics Podcast by NPR

The NPR Politics Podcast

25,785 Listeners

Up First from NPR by NPR

Up First from NPR

56,021 Listeners

KFF Health News' 'What the Health?' by KFF Health News

KFF Health News' 'What the Health?'

480 Listeners

The Readout Loud by STAT

The Readout Loud

318 Listeners

Suze Orman's Women & Money (And Everyone Smart Enough To Listen) by Suze Orman Media

Suze Orman's Women & Money (And Everyone Smart Enough To Listen)

4,404 Listeners

On Purpose with Jay Shetty by iHeartPodcasts

On Purpose with Jay Shetty

26,964 Listeners

Morning Brew Daily by Morning Brew

Morning Brew Daily

2,968 Listeners

The Daily Dad by Daily Dad

The Daily Dad

572 Listeners

The Working Genius Podcast with Patrick Lencioni by Patrick Lencioni

The Working Genius Podcast with Patrick Lencioni

362 Listeners

Pharmacy Innovators Podcast by Visante Consulting

Pharmacy Innovators Podcast

7 Listeners

340B Unscripted by SpendMend Pharmacy

340B Unscripted

32 Listeners

WSJ's Take On the Week by The Wall Street Journal

WSJ's Take On the Week

127 Listeners

Inside 340B Report by 340B Report

Inside 340B Report

2 Listeners

340Banter Podcast by FQHC 340B Compliance

340Banter Podcast

7 Listeners