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Contracted Pharmacy

Background

During the first few years after enactment and implementation of Section 340B, entities explored issues related to eligibility and that of their patients, and looked for ways to take advantage of the significant savings they could experience by participating in the program. Entities also became more familiar with the requirements for providing a pharmacy service and discovered that start up costs and the expertise required to set up an in-house pharmacy operation often created considerable burdens.

Community Health Center groups, in particular, worked with the pharmacy affairs office at HRSA to develop other options for full participation in the 340B Program, including provision of pharmacy services. As a result of these discussions, HRSA published a final notice on August 23, 1996, that outlined guidance for setting up contracted pharmacy arrangements between a 340B-eligible entity and a local pharmacy. A growing number of community pharmacists are taking advantage of the opportunities for involvement in patient care in their community.

How do I set up a Contracted Pharmacy?
Eligible entities can choose to contract with a local pharmacy to provide pharmacy services for their patients. In addition, entities that have more than one site can contract with one pharmacy per delivery site.

The Office of Pharmacy Affairs (OPA) will not review actual contracts between 340B Covered Entities and Contracted Pharmacies. Parties must have their own legal counsel review all contracts or other legal documents to ensure that all Federal, State and local requirements have been met.

The agreement between the covered entity and the pharmacy should include those elements outlined in the Contract Pharmacy Services Model Agreement.  These guidelines are designed to facilitate program implementation in covered entities that wish to utilize contracted pharmacy services to dispense 340B outpatient drugs but do not have access to an "in-house" pharmacy. A Sample Contract is available as a reference tool.

Self Certification Process
In order to ensure that drug manufacturers and drug wholesalers recognize contracted pharmacy arrangements, covered entities that elect to utilize a contract pharmacy are required to submit to the OPA a self certification that they have signed an agreement with the contract pharmacy.

The agreement must contain the provisions as noted in the Contracted Pharmacy Services Guidelines.  An original, signed Self Certification Form must be sent to:

Office of Pharmacy Affairs
5600 Fishers Lane
Parklawn Building, Mail Stop 10C-03
Rockville, MD 20857

Additional Information about Contracted Pharmacy

The following are PDF documents prepared or supported by the PSSC that eligible or participating entities as well as pharmacists may find useful in learning more about contracted pharmacy.  Please contact the PSSC at 800-628-6297 or pssc@aphanet.org if you have any questions about these materials.

Contracted Pharmacy Services, by Katheryne Richardson, PharmD, is one of nine sections taken from the ACU/PSSC 340B Pharmacy Resource Series and provides an overview of contracted pharmacy services.

The Bridge to 340B Comprehensive Pharmacy Services Solutions in Underserved Populations, created by Medpin and supported by PSSC, is a training manual for pharmacists, medical directors, and managers at safety net clinics across the country who are seeking to better understand their options for improving the value of their pharmacy-related services.

Implementing a Comprehensive 340B Contracted Pharmacy Service, created by Medpin and supported by PSSC, is a helpful tool that focuses on implementing a comprehensive 340B contracted pharmacy service and is aimed at pharmacists that are considering how to develop a closer business relationship with 340B-eligible health care providers.

 

 
 
 
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340B Program Statute

What is the "340B Program"?
Who is "Eligible"?
What Drugs Are Covered?
Registration Process
Contract Pharmacy
Prime Vendor
Databases
Alternative Methods
Comprehensive Pharmacy Grants

Federal Register Notices

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