340B Optimization

Despite the ongoing political debate about the intent and impact of the 340B program, it remains a vital source of return for service line investments. Strong and growing outpatient pharmacy margins can be an important offset to shrinking margins from other hospital services, particularly for 340B eligible institutions.  Well-developed outpatient pharmacy strategies can complement care management and payer initiatives, and they can add up to 50% in incremental margin.

Progressive Healthcare helps clients grow revenue, drive margin, and improve outcomes. A recently completed engagement identified opportunities to increase a client’s margin by 100% (doubling from $5 million to $10 million) earned under the 340 B program. This comprehensive assessment addressed:

  • Priority HOPD physician clinic locations

  • Physician service agreements

  • Opportunities to increase owned and operating retail pharmacies

  • New IT system for retail pharmacies

  • Specialty pharmacy selection and contracting

  • Priority specialty clinic programs

Progressive Healthcare’s outpatient pharmacy advisory services include:

  • 340B optimization:

    • Physician clinic development

    • Infrastructure assessment

    • Retail pharmacy (owned vs. contract)

    • Program compliance

  • Specialty Pharmacy development:

    • Pharmacy selection and contracting

    • Clinical program development

  • Care Management integration to increase targeted patient participation in active care management; increasing dispensing volumes while improving outcomes