Under 340B pricing, which distribution method is permitted?

Under 340B pricing, which distribution method is permitted?

• A. In-house pharmacies or to an outpatient clinic for direct administration to patients
• B. Distribution to other pharmacies for resale
• C. Exporting drugs internationally
• D. Donating to nonprofit organizations

Answer: (A)

340B pricing is intended to lower drug costs for covered entities so they can care for eligible patients. The distribution must support direct patient care within the entity, meaning the medication is stocked and dispensed through an in-house pharmacy or at an outpatient clinic where it is given to the patient for administration. This keeps the drug within the care setting and helps ensure it is used for eligible patients, avoiding diversion or resale. Distributing discounted drugs to other pharmacies for resale, exporting internationally, or donating to unrelated nonprofit organizations would remove the product from the intended patient-care context and violate the program’s rules. Therefore, dispensing through the entity’s own pharmacy or clinic for direct patient use is the permitted method.

340B pricing is intended to lower drug costs for covered entities so they can care for eligible patients. The distribution must support direct patient care within the entity, meaning the medication is stocked and dispensed through an in-house pharmacy or at an outpatient clinic where it is given to the patient for administration. This keeps the drug within the care setting and helps ensure it is used for eligible patients, avoiding diversion or resale.

Distributing discounted drugs to other pharmacies for resale, exporting internationally, or donating to unrelated nonprofit organizations would remove the product from the intended patient-care context and violate the program’s rules. Therefore, dispensing through the entity’s own pharmacy or clinic for direct patient use is the permitted method.