The 340B drug pricing program provides front-end discounts on covered outpatient drugs to certain federal grantees, federally qualified health centers and look-alikes, and qualified hospitals referred to as covered entities. Almost half of hospitals participate in 340B, reaping the benefit of significant savings on the average wholesale price of the cost of pharmaceuticals, as well as the increased ability to stretch scarce resources, reach more eligible patients, and provide more comprehensive services.

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