340bemployed.org

Your Free Source for 340B News and Commentary

  • Home
  • About Us
  • Employers
  • Job Seekers
  • Advertise
  • 340B Health

340B Hospital Recertification to Begin on Aug. 19

Rural and cancer hospitals will have to declare how they will buy orphan drugs
 

Print Article

August 14, 2013—Rural and cancer hospitals will get their first hands-on experience complying with the new 340B orphan drug exclusion regulation beginning next Monday, the start of the four-week period during which they and all other 340B hospitals must recertify their eligibility for the drug discount program.[ms-protect-content id=”2799″]

The second annual recertification of 340B hospitals gets underway on Aug. 19. Hospitals will have until Sept. 13 to affirm that they and all of their outpatient sites are properly listed in the Health Resources and Services Administration (HRSA) Office of Pharmacy Affairs’ (OPA) 340B database and that they obey all 340B program requirements. Those that fail to recertify will be removed from the program effective the first day of the next quarter, which in this case is Oct. 1.

Oct. 1 also happens to be the effective date of HRSA’s 340B orphan drug exclusion final rule. It will forbid rural and cancer hospitals from buying orphan drugs through the 340B program only when they use such drugs for the indications for which the drugs received an orphan designation. Disproportionate share (DSH) and children’s hospitals are not subject to the exclusion.

While rural hospitals (critical access hospitals, sole community hospitals, and rural referral centers) are not bound by the 340B statute’s separate prohibition on buying drugs through group purchasing organizations (GPOs), the prohibition does apply to cancer hospitals. HRSA, however, has determined that when a cancer hospital dispenses or administers an orphan drug for the indication for which it received its orphan designation, it is no longer a “covered outpatient drug” for 340B purposes.

Upon enrolling in 340B and/or during annual recertification, HRSA is requiring the hospitals to pick between two options:

  • They will buy their orphan drugs through 340B and keep auditable records to demonstrate their compliance with the orphan drug exclusion; or
  • If they cannot or do not wish to keep such records, they will buy their orphan drugs outside of 340B regardless of the indication for which the drug is used (and, for cancer hospitals, they will not use a GPO to buy those drugs).

Hospitals can change their 340B “opt-in/opt-out” status for orphan drugs on a quarterly basis by notifying HRSA.

Even though the orphan drug regulation is not legally binding until Oct. 1, HRSA is requiring affected hospitals to comply with its recertification provisions as if it were already in place.

This Friday, Aug. 16, HRSA is sending all 340B hospitals’ 340B authorizing officials and primary contacts an email alert that on Monday the 19th the authorizing official will be getting a second email containing the user name and password they need to complete the recertification process online.

HRSA has asked groups representing 340B hospitals to advise their members to:

  • Update the hospital authorizing official’s email spam filter to allow emails from 340b.recertification@hrsa.gov.
  • Make a printout of the 340B recertification user’s manual.
  • For hospital types that require a designated minimum Medicare disproportionate share adjustment percentage to be eligible for 340B, have a copy of the hospital’s latest filed Medicare cost report Worksheet E, Part A.
  • Remember that the authorizing official alone is responsible for completing the recertification process.
  • Contact 340B Prime Vendor Program at ApexusAnswers@340bpvp.com or 1-888-340-2787 if they have questions and, when doing so, make sure to have the hospital’s 340B ID number.[/ms-protect-content]

Follow us on X

340B Health Follow

340B Health is the leading advocate & resource for hospitals that serve their communities by participating in the 340B drug pricing program. #Protect340B

340BHealth
340bhealth 340B Health @340bhealth ·
23h

New #340B reporting mandates are on the rise in statehouses nationwide. Seven states enacted new laws in 2025, bringing the total to 10. In our latest episode of #340BInsight, Tom O’Donnell of 340B Health breaks down what these changes mean for covered entities.
🎧 Listen here:…

Reply on Twitter 2001015773829955767 Retweet on Twitter 2001015773829955767 Like on Twitter 2001015773829955767 Twitter 2001015773829955767
340bhealth 340B Health @340bhealth ·
14 Dec

🏥 The #340B program has helped hospitals stretch limited resources — funding vital services for populations historically by the health care system. Without it, many safety-net hospitals couldn’t keep their doors open. #HealthcareForAll

Reply on Twitter 2000294859136028780 Retweet on Twitter 2000294859136028780 1 Like on Twitter 2000294859136028780 Twitter 2000294859136028780
340bhealth 340B Health @340bhealth ·
13 Dec

❤️ 340B is about serving patients. For decades, drug discounts under #340B have enabled hospitals to fund services for uninsured, rural, and low-income patients. We must protect that mission. #Protect340B

Reply on Twitter 1999972098018570266 Retweet on Twitter 1999972098018570266 Like on Twitter 1999972098018570266 2 Twitter 1999972098018570266
Load More

RSS 340B Informed

  • An In-Depth Look at Total 340B Purchases
  • Ideas for 340B Changes Could Lead to Legislation
  • Help From 340B After a Rare Diagnosis and an Unaffordable Bill

Copyright © 2025 · 340B Health