The 340B Drug Pricing Program enables certain types of safety net organizations to obtain deeply discounted medications, at prices below the “best price” typically offered to Medicaid agencies. In the past, few rural hospitals qualified for the 340B program, but the 2003 Medicare Modernization Act has revised eligibility criteria, thereby allowing many rural hospitals to participate. This report presents the results of a 2006 survey of pharmacy directors at rural hospitals currently buying discounted outpatient drugs through the 340B program. Hospitals were classified as rural if they are located in non-metropolitan counties as identified by the U.S. Office of Management and Budget. The purpose of this study was to understand the perspectives of pharmacy directors at participating hospitals on the 340B program in general, the financial impact of the program, and which specific program features presented barriers to its broader implementation. In addition, to determine if there are differences in the characteristics of eligible rural participating and non-participating hospitals, selected results are compared to those from a separate companion survey of pharmacy directors at hospitals that were eligible but not participating in the 340B program.
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The 340B Drug Pricing Program (hereafter referred to as the 340B program) enables certain types of safety-net organizations to obtain deeply discounted outpatient medications at prices below the “best price” typically offered to Medicaid agencies. In the past, few rural hospitals qualified, but as a result of the Medicare Modernization Act of 2003 (MMA), many more rural hospitals are potentially eligible to participate.

This working paper summarizes the results of a 2006 survey of pharmacy directors at rural hospitals eligible to participate in the 340B program but identified as not participating at the time of the survey. The purpose of this study was to understand why rural hospitals that are eligible for the program are not participating and to determine whether there are specific program features that present barriers to participation. A companion survey of hospitals currently participating in the program was also conducted; findings will be released in a separate report. (read more)