340B Drug Pricing Program

The 340B program was established in 1992 and is administered by the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services (HHS). The primary aim of the program is to allow eligible healthcare facilities, such as qualifying hospitals and clinics that serve vulnerable or low-income patient populations, to purchase outpatient prescription drugs at significantly discounted prices from drug manufacturers.

The discounts offered through the 340B program are intended to stretch the resources of eligible healthcare providers, allowing them to improve patient care, expand services, and enhance access to affordable medications for those in need. The program is considered vital for safety-net providers and plays a critical role in supporting the healthcare services they offer to underserved communities.