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HRSA Announces 340B Eligibility Exceptions Due to COVID-19 Public Health Emergency

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The Health Resources and Services Administration (HRSA) announced the implementation of Section 121 of the Consolidated Appropriations Act of 2022, which creates an eligibility exception that permits certain hospitals’ reinstatement into the 340B Drug Pricing Program if they meet certain qualifications.  

To be eligible for the exceptions, hospitals must: 

  • Be classified as a disproportionate share hospital (DSH), sole community hospital, rural referral center, children’s hospital, or free-standing cancer hospital 
  • Have been terminated from the 340B program due to an inability to meet the statutorily required DSH adjustment during Medicare cost reporting periods beginning Oct. 1, 2019, and ending no later than Dec. 31, 2022 
  • Have been terminated as a result of actions taken by or other impact on the hospital in response to, or as a result of, the COVID-19 public health emergency (PHE) 
  • Have been a covered entity on Jan. 26, 2020 (the day before the first day of the COVID-19 PHE) 

HRSA identified and directly notified hospitals it believes are impacted by the provision. Hospitals that believe they may qualify and are not listed are encouraged to contact the 340B prime vendor at (888) 340-2787, Monday-Friday from 6 a.m. to 3 p.m. (PT) or