Which of the following is NOT a 340B covered entity?

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Study for the PTCB Billing and Reimbursement Test. Use flashcards and multiple choice questions, each with hints and explanations. Prepare for your exam!

Multiple Choice

Which of the following is NOT a 340B covered entity?

Explanation:
In the 340B program, only certain eligible organizations qualify as covered entities to purchase drugs at discounts for their patients. These typically include health centers (such as federally qualified health centers), hospitals that meet the program’s requirements, and Ryan White HIV/AIDS program grantees. A community pharmacy by itself does not qualify as a 340B covered entity, though it can dispense 340B drugs on behalf of a covered entity through a contract pharmacy arrangement. The discount is provided to the covered entity, not to the standalone pharmacy, which is why community pharmacies are not 340B covered entities.

In the 340B program, only certain eligible organizations qualify as covered entities to purchase drugs at discounts for their patients. These typically include health centers (such as federally qualified health centers), hospitals that meet the program’s requirements, and Ryan White HIV/AIDS program grantees. A community pharmacy by itself does not qualify as a 340B covered entity, though it can dispense 340B drugs on behalf of a covered entity through a contract pharmacy arrangement. The discount is provided to the covered entity, not to the standalone pharmacy, which is why community pharmacies are not 340B covered entities.

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