ASCO Special Article Policy Statement on the 340B Drug Pricing Program by the American Society of Clinical Oncology By American Society of Clinical Oncology Congress established Section 340B of the Public Health Service

manufacturers to provide substantial discounts for sales of cov-ered drugs to covered entities as a prerequisite to qualifying for Medicaid reimbursement. Covered hospitals and other covered entities must limit the use of discounted drugs to the outpatient care of individuals who meet the program’s definition of a “pa-tient, ” among other requirements. The 340B Drug Pricing Pro-gram is administered by the Office of Pharmacy Affairs within the Health Resources and Services Administration (HRSA) of the US Department of Health and Human Services.2 Currently, there are six types of hospitals that can qualify as covered entities under the 340B Drug Pricing Program on the basis of the hospital’s disproportionate share hospital (DSH) adjustment percentage and other factors.3 The DSH adjust-ment factor is a federal parameter established under Medicare as a proxy to identify hospitals with high levels of uncompensate