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340B Impacts on Care

As 340B participants, you are already aware of how your facility is utilizing your 340B Drug Pricing Program savings. But we want to highlight the nationwide impact of how 340B supports our patients and communities that need it the most all at no cost to U.S. taxpayers.


340B has been facing attacks that are more detrimental than ever, and despite just some of the losses highlighted in part in an earlier blog post, we still have a lot to say for the positive impact of 340B across the country.

340B was designed to “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services” by requiring Medicaid participating drug manufacturers to provide outpatient drugs at a reduced price. These savings are what allows many covered entities to be able to provide for our most in-need populations.


In 2018, 340B participating hospitals made up only 43% of all acute care hospitals in the United States. provided 60% of the nation’s uncompensated and unpaid care. In addition, over 75% of all hospital care for Medicaid patients is done at 340B entities.


340B hospitals consistently provide more uncompensated and unreimbursed care than non-340B and treat more low-income patients out of their overall patient load. The Government Accountability Office (GAO) has stated in reports that on average, 340B facilities operate on lower financial margins than non-340B facilities.


How are covered entities using their 340B savings?

  • 93% of rural hospitals state they rely on 340B to help keep doors open and provide essential services to their community.

  • 95% of all hospitals in 340B report using their 340B savings to support the provision of uncompensated and unreimbursed care

  • 86% of disproportionate share (DSH) hospitals report using 340B savings to improve medication adherence in patients.

  • 80% of DSH hospitals report using 340B savings to offset low Medicaid reimbursement for care

  • 78% of 340B hospitals report using 340B savings to reduce preventable readmissions through increased medication adherence for patients living with HIV, hepatitis, and other chronic conditions.

These are only some very broad overviews of how 340B benefits facilities and communities around them. There are many more specific things being done by many facilities, for example:


Henry Ford Health System in Michigan embedded pharmacists into primary care and specialty clinics to better treat chronic diseases and provide services such as the meds to beds program, home delivery and courier services.

Oregon’s Providence Cancer Center has been able to continue providing infusion treatments for uninsured and underinsured patients, while also significantly expanding its social work and spiritual care support programs.

Intermountain Healthcare was able to start a diabetes clinic in Mount Pleasant, Utah that provides free discharge kits for all patients, which includes a month supply of diabetes drugs, monitoring systems and blood glucose test strips.

Genesis Healthcare System opened an anticoagulation clinic to help patients with blood clots and clotting disorders determine proper dosing, dispense medications, and provide discounted medications through 340B.


There are so many ways that 340B savings can support the whole health and wellness of your patients and communities, that we can’t possibly list them all, but we will close out with just some services available at 340B hospitals as a direct result of 340B savings providing an additional funding opportunity.

  • Community health screenings

  • Public wellness & community outreach programs

  • Expanding rural health clinics into neighboring communities

  • Providing free or discounted medications for patients

  • Becoming a certified trauma center

  • Free or discounted patient transportation to health services

  • More widespread and in-depth COVID-19 care and prevention.

If you would like to find more 340B savings, even with growing manufacturer restrictions and court battles, Optimal340B can be your experts.


We work with your facility to ensure a custom and comprehensive 340B program that is easy for you to oversee. We also have a full range of compliance offerings from External Audits to 340B Policy & Procedure creation.


Reach out today and don’t lose out on a better 340B!


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