What is the primary purpose of the 340B Program?

The primary purpose of the 340B Program is to ensure discounted drug pricing for eligible healthcare providers. This program enables designated hospitals and healthcare organizations, particularly those that serve a high number of uninsured or low-income patients, to purchase outpatient drugs at reduced prices. By offering these discounts, the 340B Program aims to enable healthcare providers to stretch their scarce federal resources, allowing them to provide more comprehensive services to their patients.

This discounting mechanism is crucial for improving access to medications and supporting the sustainability of healthcare providers that are often on the front lines of caring for vulnerable populations. The 340B Program is integral to helping these institutions maintain operations while facing the financial pressures of providing healthcare services, thus directly impacting patient care and health outcomes in underserved communities.