340B Program
Program Stewardship & Value to the Community
What Is the 340B Program?
The 340B Drug Pricing Program (“340B Program”) is a federal drug discount program that Congress passed into law in 1992. The 340B Program requires drug manufacturers to provide drugs at discounted prices to hospitals that provide a disproportionate share of uncompensated care to patients who are unwilling or unable to pay.
Hospitals that qualify for the 340B Program are nonprofit or government entities that provide a substantial amount of care to Medicaid and low-income Medicare patients. The 340B Program benefit compensates hospitals for uncompensated care and helps “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” (Source: Health Resources and Services Administration [HRSA], Office of Pharmacy Affairs [OPA] Website, 340B Drug Pricing Program.)
Serving the People of Utah Through the 340B Program
At University of Utah Health, we are dedicated to serving people throughout the Mountain West by continually improving individual and community health and quality of life. We achieve this through excellence in patient care, education, and research; each is vital to our mission, and each makes the others stronger.
The 340B prescription drug program provides critical funding to support our mission of providing compassionate, patient-centered care. This program makes it possible for us to expand our reach to under-resourced and uninsured patients and enhance our services, ensuring comprehensive and equitable care to communities throughout the region. Our goal is to enrich the lives of all our patients, address their unique needs, and foster their overall well-being. Serving all of our diverse communities is foundational to our mission of advancing health.
We invite you to explore the profound impact this essential program has on our organization. Even more importantly, we urge you to understand the incredible difference it makes in the lives of the communities and patients we serve. The 340B program opens doors to initiatives and resources that would otherwise be unavailable, ensuring those in need receive the support and care they deserve.
Dan K. Lundergan, MHA
Charlton Park, MBA, MHSM
Manufacturer Notice for Utah Contract Pharmacy Law
Section 31 A-46-311 (i.e. S.B. 69 Medication Amendments) of the Utah Code will take effect May 7, 2025. This section of law prohibits pharmaceutical manufacturers from engaging in certain conduct with respect to the 340B drug discount program, including among other things:
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Restricting the acquisition, dispensing, or delivery of a 340B drug to any location authorized by a covered entity to receive the drug, unless prohibited by federal law;
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Requiring submission of claims data, utilization data, or information about a covered entity's contracts with a third-party; or
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Interfering with a contract between a pharmacy and a covered entity or the ability of a pharmacy and a covered entity to enter into a contract.
Please review the law for a full list of prohibitions.
About University of Utah Health
University of Utah Health (U of U Health) is the only academic health system in the Mountain West region. We serve patients in Utah and five surrounding states, servicing an area that comprises 10 percent of the geographic United States. Our mission is to improve health and quality of life through excellence in patient care, education, and research. As a Disproportionate Share Hospital (DSH) and safety net provider, U of U Health serves a large proportion of low-income and uninsured patients. Many of the services we provide are under- or unreimbursed, qualifying U of U Health for the 340B Program. U of U Health is committed to 340B Program compliance. We invest in the necessary resources and infrastructure to ensure we continue to meet the 340B Program rules and provide uncompensated care to those who need it.
How the 340B Program Benefits Our Community
U of U Health has participated in the 340B Program for more than 25 years. In FY 2018, we spent more than $256 million on medications. Without the 340B Program, our medication spend would have been more than $405 million. The savings generated from the 340B Program allow us to improve patient outcomes in our community and provide critical services to patients who would otherwise lack access to care.
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