The 340B program is a Federal drug discount program that was established in 1992.  The 340B program requires drug manufacturers to provide outpatient drugs to eligible health centers, clinics and hospitals at a discounted/negotiated rate - an average of 50% below retail.  The discount is then passed on to patients of these sites through contractual arrangements made between the entity and a pharmacy.

340B pricing is sometimes also referred to as "PHS pricing" or "602 pricing". 

Entities eligible to participate in this program include:

• Federally Qualified Health Centers (FQHCs)
• Federally Qualified Health Center look-alikes (FQHCLAs)
• Disproportionate Share Hospitals (DSHs)
• Family Planning Clinics
• HIV / Ryan White Clinics
• State-operated AIDS Drug Assistance Programs
• Black Lung Clinics
• Hemophilia treatment centers
• Urban Indian organizations
• Sexually transmitted disease and tuberculosis clinics

For more information on entity eligibility call us at (212) 676.2152.

NYCRx offers:

• a competative management fee;
• free program implementation;
• ongoing technical assistance and training for health center staff and pharmacists; and
• a relationship with Salud A Su Alcance Pharmacy Assistance Program (see: http://nyp.org/services/pharmacy-assistance-program.html).

ALL patients who recieve medical care at your clinic can participate in the program. There are no residency requirements, income limitations, and no paperwork or enrollment forms.

This program benefits eligible entities by generating revenue for participating sites when used by insured patients, as the 340B program allows health centers to keep the difference between the discounted (340B) price and the reimbursement from commercial insurers.  This new revenue stream can be used to strengthen and expand services at the site.  To date, NYCRx has generated over $1.7 million in savings to the uninsured and revenue to the safety net providers who care for them. 

NYCRx also provides access to a robust reporting system that allows partnering sites to analyze their own data as needed.

• There is no application process, no income requirements and no citizenship requirements.
• Uninsured and underinsured patients can save between 20-70% on their prescriptions.  To date, patients have saved an average of $48 per prescription. 
• Free patient educational materials from DOHMH are available for patients with certain chronic conditions (hypertension and diabetes; others upon request).

Yes, there are many benefits for pharmacies participating in the program:

• The pharmacy is not responsible for paying for the 340B drugs. The health center pays all 340B drug costs to the wholesaler.
• The pharmacy will receive the same negotiated dispensing fee no matter what type of drug is dispensed, generic or brand.
• NYCRx provides marketing materials such as posters, flyers, palm cards and banners to increase patient traffic to the partnering pharmacy.
• Monthly dispensing, consumption & inventory reports and data management are provided by NYCRx to assist the Pharmacy.
• On-going technical assistance is provided as needed.