By usr@qconsult

April 27, 2022

The Contract Pharmacy Process for 340B Hospitals

340B Eligible Hospitals should look for ways to leverage their outpatient pharmacy operations to maximize the programs `benefits.

One way to do this is to utilize contract pharmacy arrangements.

The above diagram shows a simple diagram of the basic process of how this benefit works from a savings and profit perspective.

Step 1: Hospital purchases drug at 340B price from wholesaler/manufacturer

Step 2: Hospital has drug delivered directly to contract pharmacy

Step 3: Patient picks up their prescription from the contract pharmacy

Step 4: Pharmacy collects co-pay and bills patients insurance

Step 5: Pharmacy receives full insurance rate for Rx

Step 6: Pharmacy keeps a portion of the payment as a dispensing fee

Step 7: Pharmacy sends remainder of reimbursement to hospital

Step 8: Hospital keeps remaining amount as profit (after cost of drug and dispensing fee)