Navigating 340B Savings and Community Benefit


The intent of the 340B program is to stretch scarce federal resources as far as possible, reaching more eligible patients & providing more comprehensive services. Entities associated with the 340B program must adhere to strict guidelines put forth by HRSA and are able to utilize the Apexus Prime Vendor Program. Apexus provides education and assistance to all participants in the program, in addition to creating tools to help covered entities refine their compliance. One of the latest tools is a template for covered entities to organize & communicate their use of 340B savings.

Though 340B ruling does not currently require covered entities to document how 340B savings are used, it is considered best practice to demonstrate how the program is serving communities and its direct affect on the local population.  It can also validate the consequences of a loss of this program in areas of need.

The tool includes tables to outline Reported Community Benefit & Non-Reported Community Benefit.   Examples of this include, but are not limited to:

Reported Community Benefit

  • Cost of Treating Uninsured Patients
  • Un-Reimbursed Cost of Treating Medicare & Medicaid Patients
  • Community Health Improvement Services

Non-Reported Community Benefit

  • Free vaccinations
  • Free medication delivery to rural areas
  • Capital building projects focused on low income populations

This topic was discussed during the 2018 Hudson Headwaters 340B client event. An Hudson Headwaters 340B client shared an example of how 340B savings directly benefits the health center’s supported services, including Integrated PCP Supported Services, Integrated Care Management Services & Interdisciplinary Quality Improvement Services (to include a goal of decreasing inappropriate prescribing of opioids & the associated patient morbidity & mortality rates).

Although every covered entity has a different interpretation of the intent of the 340B program, it is best practice to align savings from the program & determine which areas of benefit apply directly to their 340B program.  The Apexus template ‘340B Savings & Community Benefit Template’  is available online, in addition to many other resources to maintain the utmost compliance for your program.


This post is part of our staff contributor series and was written by Sara Simons, Business Analyst


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