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To simplify the process for obtaining 340B drugs and
to make it more efficient, the original 340B legislation
contained a special requirement that mandated the
establishment of a "prime vendor." A prime
vendor is typically a single "preferred"
wholesaler that specializes in serving a group of
customers - here covered entities in the 340B Program.
Benefits of the 340B Prime Vendor Program include:
- Familiarity with subtleties of the
Section 340B program
- Value-added services
- Sub-340B prices, due to negotiations
with drug manufacturers using the collective purchasing
volume and market share potential of covered entities.
As
a result, the 340B Prime Vendor is able to provide
high quality services and low drug prices for the
benefit of the covered entities and their patients.
HealthCare
Purchasing Partners International (HPPI) currently
has the exclusive agreement with HRSA to serve as
the official 340B Prime Vendor for participating covered
entities. HPPI has managed the Prime Vendor Program
since June 2003 when it took over another company.
HPPI
is responsible for expanding the number of pharmacy
distributors and covered entities participating in
the program by using its expertise in developing efficient
distribution networks and securing sub-340B discounts
through contract negotiations and competitive bidding
processes. The new program under HPPI enables a covered
entity to participate in the program by using its
existing drug distributor.
There
are no costs or risks to joining the Prime Vendor
Program. The Program is funded through nominal fees
charged to distributors and suppliers to avoid any
costs to the covered entity. 340B Entities do have
to complete a participation agreement with HPPI in
order to access the 340B Prime Vendor contract portfolio,
since HPPI is a separate subcontractor of HRSA.
For
more information, visit the 340B Prime Vendor Program
web site at www.340bpvp.com.
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