340B Pharmacy Designations

Choosing the pharmacy with whom to designate so that your entity is able to receive 340B pricing for drugs from specified drug manufacturers is a BIG decision. Many involve a 12 month commitment and also require logistical set-ups that are hard to unentangle should things not go as planned.

This can make the decision quite important and it is crucial to look at multiple variables to insure the best choice is made. Some items to consider:

1. Data driven decisions are certainly the order of the day, but they are also only part of the picture. Which pharmacy is currently being sent the most volume of the drugs in question. There may be a clear "winner" or there may not be. Perhaps the clear volume leader is the least endorsed by the prescribers and receives the most patient complaints. There is an element of nuance to the decision that should be considered.
2. Speak with providers and staff to understand which pharmacy is best to work with - fastest, best patient service, best customer service. Ignore this aspect at your own peril. If a pharmacy is chosen for volume alone, providers will push against that choice and your 340B program could suffer.
3. Give patient surveys to figure out which pharmacies are the most patient focused.
4. Which pharmacy will work with you on pricing? The lowest cost is not always the best in terms of service. Bottom- level pricing means that pharmacy is leveraging Rx volume and it is likely that service is bottom-level to match the price.
5. What is the pharmacies' experience with the designation program? Do they submit data on your behalf or is that going to be the entity responsibility? When managing multiple designations anything the pharmacy can do to assist is one less task for your staff. Pharmacy support is key to making the designation program run smoothly.
6. Once the designation is in place you should see replenishments and 340B savings within a 1-2 months. If set-up is taking longer than that, then something is amiss with the pharmacy, the wholesaler and/or TPA. you are within your rights to push on all the entities involved to get the process moving. Every month missed is 340B savings unnecessarily lost.

Designations can be daunting but they are the reality of the 340B landscape and should be utilized to keep your 340B program generating savings. Look for a pharmacy partner that understands all the 340B operations, accounting, and provides the support needed from start to replenishment to payment to your entity.

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