Integrated Delivery Network (IDN)
Definition
An Integrated Delivery Network (IDN) is a group of health care organizations—including hospitals, physician practices, long-term care facilities, and other providers—that are organizationally affiliated and may share administrative, financial, and clinical services. IDNs are common in the U.S. health care landscape.
In the 340B context, IDNs are relevant primarily in relation to the GPO Prohibition. HRSA has clarified that a DSH, children’s hospital, or free-standing cancer hospital that is part of an IDN cannot access GPO contracts executed by the IDN for covered outpatient drugs. Accessing IDN-negotiated GPO pricing for covered outpatient drugs would violate the GPO Prohibition.
IDN membership can also affect 340B program administration, as health systems may want to centralize 340B program management across IDN member entities while ensuring that each entity’s specific compliance obligations are met.
Frequently Asked Questions
Why Integrated Delivery Network (IDN) Matters
IDN membership does not exempt hospital-type covered entities from the GPO Prohibition. Accessing IDN-negotiated GPO pricing for covered outpatient drugs is a compliance violation. Health systems with multiple 340B-eligible entities must manage compliance at the individual entity level.
How Virtue 340B Uses It
Virtue 340B helps health systems and IDNs manage 340B compliance across multiple covered entity types, ensuring that GPO Prohibition obligations are met at each applicable entity.