What is the 340B Drug Pricing Program?

The 340B Drug Pricing Program is a federal initiative established in 1992 to support healthcare providers that serve vulnerable and underserved communities. It allows eligible healthcare organizations/clinics—known as "covered entities", such as community clinics, FQHCs (Federally Qualified Health Centers), "STD/STI" clinics, and outpatient providers—to purchase outpatient medications at significantly reduced prices directly from pharmaceutical manufacturers.

 

Through partnerships with contract pharmacies, covered entities can dispense these discounted medications to eligible patients.

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Contract pharmacies are regular retail or specialty pharmacies that enter into formal agreements with covered entities to process and dispense 340B drugs on their behalf. These partnerships/contracts allow clinics to expand access to affordable medications without needing to operate their own in-house pharmacy.

 

The goal of the 340B program is simple but powerful:

To help these clinics/providers stretch scarce resources, improve access to affordable medications, and expand services for low-income, uninsured, and underinsured patients—without relying on additional taxpayer dollars.

 

Whether it’s funding additional staff, extending clinic hours, expanding access to behavioral health, or offering sliding-scale medication programs, 340B helps you do more with less—and 340B Consult is here to help you unlock its full potential.