What we’ve learned. What it means for your 340B program.
Between late 2019 and the end of 2023, ProxsysRx’s 340B Support program went from Zero to more than $500 million in savings generated for the hospitals and health systems we serve. In spite of drug manufacturer restrictions, every one of the 13 health systems we serve and support has enjoyed significant 340B-revenue increases.
And yet, says ProxsysRx 340B Team member Chance Spivey, “I can’t tell you how often I start my day by reading an email that changes all of the data analytics I’d been using to submit a significant percentage of my clients’ 340B prescriptions.” Which is why the one 340B prediction we can make for 2024 is repeated three times in this post’s headline.
Two potential 340B developments for 2024
340B Report projects that “In 2024, congressional gridlock and election year dynamics will likely slow momentum on any comprehensive 340B program reform package.”
At the same time, where manufacturer restrictions concerned, there has been a lot of regulatory activity at the state level. We may, therefore, see more states taking similar action in 2024. If not, it’s likely that even more manufacturers will add new restrictions.
How Covered Entities Should Prepare for 340B Changes In 2024
Build a team fully capable of managing your 340B program.
In our experience, most hospitals’ 340B teams are comprised only of the Director of Pharmacy and a Pharmacy Tech. That doesn’t work, and it never will.
Invest in specialized software.
The 340B program’s ultimate challenge is to pull-together all the moving parts. In our experience (again), covered entities managing their own 340B programs get everything in pieces, but their software can’t put all the pieces in one place.
Evaluate your contract pharmacy and TPA networks.
As we noted in an in-depth blog post, every health system ProxsysRx serves came to us with shortcomings in their networks. The average number of quality contract pharmacies we’ve added to their networks is five to ten.
You should also carefully evaluate your TPAs. While we were onboarding one hospital, for instance, we discovered a TPA that was charging a percentage of every prescription matched. We renegotiated their contract to a flat fee basis, saving the hospital $400,000 in just one year.
Collaborate with other covered entities.
ProxsysRx supports every major private-sector covered entity category (DSH, RRC, PED, CAH, RHC, FQHC). That’s had a tremendous impact on our team’s collective 340B program knowledge and experience. If you’re managing your own 340B program, it is critically-important that you build a network of covered entities for sharing knowledge and ideas.
Take advantage of specialty pharmacy opportunities.
As we discussed in another post, the ideal option for optimizing your health system’s 340B specialty-prescription revenue (not to mention patient outcomes) is to have your own onsite specialty pharmacy.
Qualities Common To Successful 340B Programs
A clear understanding of 340B program benefits
A successful 340B program starts with truly understanding 340B’s savings potential — and, in turn, the potential of your 340B income to positively impact patient outcomes, not to mention your mission in the community.
A culture of 340B program support
The hospitals who actively collaborate with us are the ones who benefit most from our support. We do the vast majority of the work, but we still need their support — particularly in responding to our team’s data requests.
A commitment to optimizing 340B clinical opportunities
Some covered entities have more existing 340B opportunities than others, because they have more 340B-compatible clinical programs. We’ve helped a number of health systems add clinical programs that can serve new 340B-eligible patients.
ProxsysRx is here to help, if you have questions.
There are so many ways to optimize your 340B drug program savings and benefits — overcoming manufacturer restrictions while maintaining compliance at all times. To learn more, contact Howard Hall. C: 214.808.2700 | email@example.com