TPA (Third-Party Administrator)

An organization that contracts with covered entities and pharmacies to manage the operational aspects of contract pharmacy arrangements, including patient eligibility determination, claims processing, inventory management, and data reporting.

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Contract Pharmacy (340B)

An independent or chain pharmacy that has a written agreement with a 340B covered entity to dispense 340B-priced drugs to the covered entity’s eligible patients on its behalf.

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Federally Qualified Health Center (FQHC)

A community-based health care provider receiving HRSA Health Center Program funding to provide primary care in underserved areas on a sliding fee scale, eligible for 340B participation and not subject to the GPO Prohibition.

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Critical Access Hospital (CAH)

A hospital certified to receive cost-based Medicare reimbursement, designed to improve financial performance of rural hospitals and reduce closures, eligible for 340B participation with a DSH adjustment percentage of at least 8%.

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Disproportionate Share Hospital (DSH)

A hospital that serves a significantly disproportionate number of low-income patients and receives Medicare DSH adjustment payments, eligible for 340B participation with a DSH adjustment percentage greater than 11.75% and subject to the GPO Prohibition.

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Claims Reconciliation (340B)

The process of comparing 340B drug purchasing records against dispensing and billing records to verify accuracy, identify discrepancies, and ensure that all 340B transactions are properly documented and accounted for.

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Policies & Procedures Review (340B)

A structured assessment of a covered entity’s 340B policies and procedures to verify they are current, comprehensive, and aligned with HRSA program requirements and the entity’s actual operational practices.

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CDM (Charge Description Master)

A comprehensive list of all services, procedures, and drugs that a hospital or health system can bill to payers, used in 340B programs to ensure that drugs purchased at 340B prices are billed correctly.

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