Replenishment (340B)
Definition
In a virtual inventory model, replenishment occurs when a non-340B drug is dispensed to a 340B-eligible patient from the commingled physical inventory. The entity later replaces the dispensed drug by purchasing a 340B drug to replenish the inventory. Although the replacement drug is purchased at a 340B price, it becomes neutral inventory when it arrives—it is not reserved for any specific patient.
Replenishment models operate on a neutral inventory premise: the 340B purchase ‘replenishes’ a dispensing activity that already occurred. When the replenishment order arrives, it becomes part of the general inventory available for any patient. The arriving replenishment order effectively turns the prior dispensing event into a 340B transaction retroactively.
Replenishment is the mechanism that makes virtual inventory work. Split-billing software tracks which dispensing events qualify for 340B replenishment and generates the appropriate purchasing orders. Accurate replenishment requires accurate patient eligibility data and correctly configured software.
Frequently Asked Questions
Why Replenishment (340B) Matters
Replenishment is the operational mechanism that generates 340B savings in a virtual inventory model. Errors in replenishment logic—such as replenishing for ineligible patients—constitute diversion. Understanding how replenishment works is essential for managing split-billing software and TPA relationships.
How Virtue 340B Uses It
Virtue 340B evaluates replenishment accuracy as part of our audit and monitoring services, assessing whether replenishment orders are being generated correctly based on eligible patient transactions.