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Strategies to Protect Your 340B Eligibility

For hospitals already familiar with 340B, the urgent question is no longer what the program is but it is what could put eligibility at risk and what can be done before that risk becomes a loss of 340B status.

Maintaining 340B eligibility has become increasingly challenging. Despite significant oversight from the Health Resources and Services Administration (HRSA) and the 340B program’s long-standing role in supporting hospitals that serve our country’s vulnerable patient populations, program critics want to scale it back drastically and reduce the benefits that eligible hospitals and their patients receive from the program. This is especially worrying as hospitals across the nation are expected to experience material declines in Medicaid utilization during the next few years due to H.R. 1 spending cuts and stricter eligibility rules. Reduced Medicaid enrollment could affect Medicaid patient day percentages, potentially impacting (DSH) and 340B qualification for many hospitals.

Recent analysis suggests that hospitals may experience varying levels of 340B impact as Medicaid enrollment and utilization patterns change. While some hospitals may remain eligible but experience changes in participation status, others may face increased risk of losing eligibility altogether. Understanding an organization's exposure to these risks and identifying potential mitigation strategies will become increasingly important as hospitals prepare for 2027 and beyond.

This session will explore strategies to establish, maintain, and protect eligibility. Participants will gain a deeper understanding of the relationship between Medicare DSH qualification and 340B eligibility, key operational and reimbursement considerations, and what steps hospitals can take now to preserve access to this important program.