340B Savings Utilization (Use of Savings)
Definition
The 340B program does not dictate exactly how covered entities must use the savings generated from discounted drug purchases. However, the program’s statutory intent is to allow covered entities to stretch scarce federal resources to serve more eligible patients and provide more comprehensive services. Savings are expected to support the entity’s mission and patient care activities.
In practice, 340B savings are used for a wide range of mission-aligned purposes: funding medication assistance programs, expanding clinic hours, hiring clinical staff, subsidizing care for uninsured patients, purchasing equipment, and supporting community health programs. The Community Benefit Report is a tool some covered entities use to document and communicate how 340B savings are being deployed.
As regulatory scrutiny of the program has increased, there has been growing interest from Congress, manufacturers, and advocacy groups in how savings are used. Covered entities that can clearly articulate and document their use of savings are better positioned to defend the program’s value and their participation in it.
Frequently Asked Questions
Why 340B Savings Utilization (Use of Savings) Matters
Demonstrating that 340B savings are being used for mission-aligned patient care activities supports the program's integrity and the covered entity's public accountability. As legislative and regulatory scrutiny intensifies, documented use of savings is increasingly important for program defense.
How Virtue 340B Uses It
Virtue 340B helps covered entities develop Community Benefit Reports that document how 340B savings are being used to support patient care and community health, creating a clear narrative that supports both internal accountability and external program defense.