New Study Provides Insights into 340B Pharmacies Amid Market Upheaval
Findings Show Intended Growth for On-site Community Health Center Pharmacies
AMARILLO, Texas, May 18, 2022 /PRNewswire/ — The already complex process of managing 340B pharmacies has become even more challenging for Community Health Centers (CHCs) with 16 drug manufacturers restricting discounts to contracted pharmacies, including some extending to federal grantees, and a widening shortage of pharmacy staff. The federal 340B drug discount program allows CHCs, among other safety net providers, to realize savings on drug costs from mandated discounts from manufacturers. The 340B program has experienced seismic changes in the past two years as manufacturers increasingly restrict access to the discounts and clarity on the legality of the restrictions remains tied up in courts.
CHCs’ 340B pain points are highlighted in a new report released today by Maxor 340B, an industry leader in pharmacy management and comprehensive 340B solutions. The report, titled “The State of Community Health Center Pharmacies Today,” is based on an independent survey of CHC leaders that are actively involved in managing their organization’s 340B programs.
Healthcare consultancy Sage Growth Partners conducted the survey to look at pharmacy-related challenges, needs, preferences and plans of CHCs. The report reveals what CHCs want from their 340B pharmacy partners, as well as their preferred vendor characteristics.
“This survey confirms that managing pharmacies and 340B programs has become even more complex and challenging in the past few years, due to the impact of the pandemic, changing compliance requirements, and uncertainty over participation by drug manufacturers. CHCs may increasingly look to outside partners to help them manage this complexity,” said Mike Ellis, CEO of Maxor National Pharmacy Services. “CHC’s are seeking comprehensive solutions, good service, easy to use technology, transparent and innovative fee structures, compliance expertise, and excellent overall value.”
“Our research shows that those who can offer a transparent and responsive partnership to help CHC leaders simplify 340B programs will have the upper hand going forward,” said Dan D’Orazio, CEO, Sage Growth Partners.
Highlights from the survey include:
- On-site CHC pharmacies are popular and growing. Slightly more than half (56%) of respondents currently operate on-site pharmacies while another third plan to open one in the next three years.
- Staffing tops the long list of operational challenges. Some 38% of respondents say their top challenge today is staffing, while 19% say it’s payer contracting, and 17% cite managing specialty drug referrals and authorizations.
- Nearly one-third use third parties to manage their on-site or specialty pharmacies. As the complexity of 340B pharmacies continues to grow, a greater number of health centers are likely to need outside expertise to ensure success.
- CHCs want partners who can provide comprehensive services, deliver overall value, and ensure compliance. Respondents say their top vendor issues are lack of tailored solutions, fee structures, and managing multiple vendors. Being able to work with a single vendor that can support multiple needs such as contract pharmacy administration and referral capture— in addition to managing an on-site pharmacy — is valued by 79% of respondents.
The survey, which was conducted in the first quarter of 2022, gathered responses from 75 key leaders, influencers and decision-makers in CHC 340B programs. Their characteristics included:
- 39% were CEOs and 29% were VPs/Directors of Pharmacy
- 68% are decision makers and 31% are key influencers for 340B programs
- 88% operate multiple health centers (69% operate 2 to 15 clinics)
The full market report can be found here. Additional information about Maxor’s 340B services can be found at maxor340B.com.
About Maxor 340B
Maxor 340B leverages its deep pharmacy expertise to consistently deliver transparency, simplicity and value to healthcare organizations, patients, and communities alike. As a comprehensive 340B and pharmacy management partner, we tailor our solutions to meet the needs of each covered entity, so they can save time, reduce costs, and realize the full potential of their pharmacy programs. For more information, visit maxor340B.com.
About Sage Growth Partners
Sage Growth Partners accelerates commercial success for healthcare organizations through a singular focus on growth. The company helps its clients thrive amid the complexities of a rapidly changing marketplace with deep domain expertise and an integrated application of research, strategy, and marketing. For more information, visit sage-growth.com.
For More Information
George Evanko
703-627-3037
gevanko@sage-growth.com
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SOURCE Maxor 340B
