Which entity is designated as eligible for 340B discounts?

The correct choice, DSH Covered Entities, refers specifically to entities that participate in the 340B Drug Pricing Program. These entities are typically safety-net providers that serve vulnerable populations, including low-income individuals or those who are uninsured. The program enables these entities to purchase outpatient drugs at significantly reduced prices, allowing them to stretch scarce resources and provide more comprehensive healthcare services to their communities.

DSH Covered Entities include hospitals that receive disproportionate share hospital (DSH) payments, certain community health centers, and other designated providers that serve a high percentage of low-income patients. This status is essential as it ensures that the benefits of the 340B program are applied to those organizations most in need of financial assistance to improve access to healthcare and medications.

In contrast, pharmaceutical wholesalers, low-cost generic manufacturers, and managed care organizations do not qualify for 340B discounts, as they are not directly involved in providing care to eligible patients under this program. Their primary functions involve the distribution, production, or management of pharmaceuticals, and they are not designed to serve the specific populations that the 340B program aims to support. Hence, only DSH Covered Entities are eligible for the discounts provided by the 340B program.