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Sage Growth Partners Releases a New Report on 340B Pharmacy Benefits

By Sage Growth | January 18, 2018

SGP’s research compares 340B models to optimize FQHC patient care, finances, and operations

Baltimore, MD – Jan. 18, 2018 – Sage Growth Partners (SGP), a Baltimore-based healthcare researchstrategy, and marketing firm, today announced the release of a new report, Realizing the Full Power of 340B Pharmacy Benefits. The report examines three different 340B pharmacy models, and discusses the pros and cons of each as they relate to the sustainability and success of federally qualified health centers (FQHCs) over time.

Created in 1992, the 340B Drug Discount Program is a federal initiative that requires participating drug manufacturers to provide outpatient drugs to qualified safety net providers at significantly reduced prices. This program has provided significant benefit to FQHCs and their patients, enabling access to discounted drugs while generating additional revenue and savings.

SGP’s report examines three approaches to 340B: a do-it-yourself (DIY) model, a contract pharmacy model, and a global managed services model. Each provides varying levels of control and clinical and financial benefits for the FQHC.

“FQHCs are faced with the challenge of generating a level of revenue that will sustain them, enabling them to continue to provide their services into the future,” said Dan D’Orazio, SGP CEO. “While a DIY pharmacy model provides enhanced patient care, it can be a burden to manage. Alternately, a contract pharmacy model relieves the FQHC of the management burden, but delivers a lower revenue stream and a less integrated level of care. In our analysis, a global managed services model provided the best of both worlds, allowing administrative ease and transparency along with revenue and care optimization. However, health centers should consider their size and payer mix before making any decision, and should conduct adequate due diligence with any vendor to ensure they have the necessary 340B expertise to provide optimal patient care and a robust financial ROI.”



Sage Growth Partners accelerates commercial success for healthcare organizations through a singular focus on growth. The company helps its clients thrive amid the complexities of a rapidly changing marketplace with deep domain expertise and an integrated application of research, strategy, and marketing.

Founded in 2005, Sage Growth Partners is located in Baltimore, MD and serves clients such as GE Healthcare, Philips Healthcare, The Healthcare Association of New York State, Healogics, Quest Diagnostics, Qlik, and Legacy Community Health. Visit us online at


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