Protecting the True Nature of 340B

The 340B program was implemented to provide certain hospitals and clinics with drugs at significant discounts since they provided care to a disproportionate share of low-income patients. However, since its inception, the 340B program has drifted heavily from its mission. With the passage of the Affordable Care Act (ACA), there has been a significant increase in the number of institutions eligible to receive 340B discounts. The number of contract pharmacies affiliated with such covered entities has also increased since 2010, when the Health Resources and Services Administration (HRSA) allowed an unlimited number of contract pharmacies to serve eligible institutions.

However,  it is unclear whether the proliferation of contract pharmacies is consistent with the 340B mission of serving uninsured and low-income communities. For example, a study in the Journal of Medical Association concluded that 340B contract pharmacy growth was concentrated in high-income neighborhoods, compared to low-income communities where the number of contract pharmacies declined. The tool developed by Pioneer Institute identifies the number and physical location of contract pharmacies for all 340B eligible entities. Pioneer Institute has built this website so that users may observe contract pharmacy trends from a national and local perspective. The goal is to quantify and depict the volume and geographic distribution of contract pharmacies for each 340B eligible entity throughout the U.S. The tool is designed to contextualize the 340B policy solutions under consideration at the federal and state levels.

Location of 340B-eligible Contract Pharmacies

This project was developed, in part, thanks to a grant from Pfizer Inc.  Pioneer’s Life Sciences also receives generous support from other corporations, foundations, and individuals.

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