What type of pharmacy dispenses medications under the 340B program?

The 340B program allows eligible healthcare organizations, known as covered entities, to purchase medications at significantly reduced prices to help disadvantaged patients. Among the various types of pharmacies, contract pharmacies play a vital role in this system.

Contract pharmacies are typically partnerships established between a covered entity and a pharmacy that is not owned by the entity. These relationships enable covered entities to extend their 340B benefits beyond their own in-house pharmacies, ensuring that patients have greater access to affordable medications. By utilizing contract pharmacies, covered entities can improve their reach and provide essential services in areas where they may not have a physical pharmacy presence, thus broadening their impact in community health.

Other pharmacy types, such as retail, mail-order, and specialty pharmacies, can engage with the 340B program, but their roles are often less central or come with specific conditions or limitations under the program's guidelines. For example, while retail pharmacies can dispense drugs, they do so usually under standard commercial practices not specifically tailored to 340B program requirements. Therefore, contract pharmacies are essential to the operational efficiency of the 340B program, which is why this option stands out as the correct answer.