Hospital Outpatient Facility (340B)
Definition
An offsite hospital outpatient facility is eligible to register as a 340B child site if it is listed as a reimbursable facility on the parent hospital’s most recently filed Medicare cost report, with associated outpatient costs and charges. The facility must be under the covered entity’s Medicare provider number.
If a facility is a free-standing clinic that submits its own cost reports using a different Medicare provider number, it is NOT eligible to register as a child site under the parent hospital’s 340B program. It would need to establish its own 340B eligibility independently, if eligible.
All clinics located offsite of the parent hospital must register as child sites if they want to participate in 340B—even if they are in the same offsite building as another registered child site. Each location must be individually registered.
Frequently Asked Questions
Why Hospital Outpatient Facility (340B) Matters
Hospital systems often have complex networks of outpatient facilities. Ensuring that all participating facilities are properly registered and eligible is essential for compliance. Registering ineligible facilities or failing to register eligible ones are both sources of audit risk.
How Virtue 340B Uses It
Virtue 340B reviews hospital outpatient facility eligibility and OPAIS registration as part of every hospital-type covered entity audit and consulting engagement.