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Leveraging 340B for FQHCs and their Patients

By Sage Growth | October 14, 2019

An FQHC executive panel shares the challenges of in-house pharmacies and their reaction to a hybrid model

Nearly all FQHCS benefit from 340B, a federal discount drug program in which participating drug manufacturers provide outpatient drugs to safety net providers at a significant discount.

The majority of FQHCs participate in 340B by contracting with retail pharmacies in a ‘contract model.’ While this is the easiest and most frequently used approach to 340B, its limitations include lower revenues and less coordinated patient care compared to an inhouse pharmacy owned and operated by the health center.

So why don’t more FQHCs have in-house pharmacies?

The answers to this question emerged in a recent roundtable of eight California FQHC executives attending the California Primary Care Association’s CFO Conference in May 2019. We’ve served the interests of FQHCs since our founding in 2006 and decided to convene the group so that FQHC executives could probe the 340B program, share experiences and best practices, and explore the issues regarding its successful implementation, compliance and operations. Roundtable participants included six FQHC CFOs, a COO, and a Revenue Cycle Director, and the COO of PharMedQuest, a provider of turnkey 340B pharmacy services for FQHCs.

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