What is the term for the regulation against the improper use of 340B drugs?

The regulation against the improper use of 340B drugs is referred to as diversion prohibition. This term specifically addresses the requirement that 340B drugs must not be diverted to individuals who are not eligible for 340B pricing, ensuring that the discounted drugs are used only for patients who qualify under the program's criteria. This regulation is crucial for maintaining the integrity of the program and ensuring that the benefits intended for specific populations, particularly low-income and uninsured individuals, are safeguarded.

Understanding diversion prohibition is essential for healthcare providers and organizations participating in the 340B Program, as violations can lead to significant penalties, including the potential loss of eligibility for the program. This regulation is integral to the proper administration of the 340B Program, ultimately aimed at maximizing access to affordable medications for eligible patients.