New
Prime Vendor Offers Sub-ceiling 340B
Prices, Services
Dear
340B Covered Entity:
The Health Resources and Services Administration (HRSA), Healthcare Systems
Bureau, Office of Pharmacy Affairs, selected HealthCare Purchasing Partners
International (HPPI) to operate the new 340B Prime Vendor Program (PVP),
effective September 10, 2004. The new PVP replaces the previous agreement
with AmerisourceBergen. A 340B covered entity that participated in the
old Prime Vendor Program operated by AmerisourceBergen was not automatically
enrolled in the new PVP. A covered entity that wishes to receive sub-ceiling
340B prices and other value-added products and services that are only available
through the new PVP, must apply directly for membership in the new PVP
with HPPI. Under the terms of the agreement, HPPI is to carry out three
primary functions: negotiate drug prices below the statutorily required
340B ceiling price; enter into favorable distribution agreements with multiple
drug wholesalers; and provide discounts on other value-added pharmacy products
and services.
As the new Prime Vendor, HPPI has successfully negotiated discounts on over
2,000 products with more on the way. The negotiated prices range from 1 to
49 percent below the statutory 340B-ceiling price. HPPI has secured aggressive
pricing on distribution agreements with the three national drug wholesale companies
and five regional companies. Numerous value-added products and services have
also been added, such as discount pricing for diabetic supplies, vaccines at
Federal government equivalent prices, patient assistance programs, split-billing
software solutions, inventory management and tracking systems, and other outpatient
related products and services.
Over
1,700 covered entities have already signed
up (as of Aug. 20, 2005) with the new
PVP. If your organization has not taken
action to join, you are encouraged to
sign up today. The program participants
currently represent over $2 billion in
annual pharmacy purchases. Your participation
will enable the PVP to consolidate even
more purchases to more effectively leverage
the collective purchasing power of all
participating covered entities so that
even greater discounts can be secured
for its participants.
You
are encouraged to maximize the additional
value that is available to your organization
through active participation in the 340B
Prime Vendor Program. Participation and
program information is available at (888)
340-BPVP (2787) and from the Internet
at www.340bpvp.com/home.asp.
There are no costs or risks associated
with enrollment, only the opportunity
to provide your facility with discounts
on pharmaceuticals and other value-added
products and services.
Jimmy
R. Mitchell, R.Ph., M.P.H., M.S.
Director
Office of Pharmacy Affairs
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