SOURCE: 340B Prime Vendor Program

June 08, 2005 08:00 ET

340B Prime Vendor Program Signs Collaborative Agreements With Three GPOs, Benefiting Members That Qualify for Section 340B Drug Pricing Program

IRVING, TX -- (MARKET WIRE) -- June 8, 2005 -- The 340B Prime Vendor Program today announced it has signed agreements that will facilitate the enrollment of the member health care organizations served by Amerinet, Inc., GNYHA Services, a subsidiary of the Greater New York Hospital Association, and Novation into the Section 340B Prime Vendor Program. Collectively, these three group purchasing organizations (GPOs) represent 735 health care organizations that qualify for the 340B program, approximately 64 percent of the nation's 1,153 disproportionate share hospital sites.

These national health care GPOs agreed to participate in this unique, collaborative agreement to facilitate participation by their disproportionate share hospital members, helping them realize additional savings, which may be as high as 50 percent off of already discounted 340B pricing on outpatient medications, through the Prime Vendor Program, while maintaining their existing GPO agreements for inpatient activities.

"Amerinet, GNYHA Services and Novation should be recognized for helping their members to access the 340B Prime Vendor Program to substantially lower their supply costs for outpatient drugs," said Chris Hatwig, senior director of the Prime Vendor Program. "The 340B Prime Vendor Program provides access to life-saving medications to those who need it most."

HealthCare Purchasing Partners International (HPPI), another GPO, administers the program for the federal government and is responsible for negotiating and administering Section 340B Prime Vendor Program contracts, providing low-income Americans with access to life-saving medications.

"Section 340B-covered heath care organizations provide an invaluable public service," said Allen Dunehew, Amerinet vice president of pharmacy. "Many clinics and public hospitals have to stretch already limited funds to give uninsured and underinsured populations access to quality health care. We have to continue to support their efforts. We encourage other provider groups to join Amerinet in facilitating unique approaches for these organizations to take advantage of the Section 340B Prime Vendor Program for their outpatient medication services."

"With a growing emphasis on pharmaceuticals and pharmaceutical care as a vehicle to lower long-term health care costs associated with good health status and decreased disease morbidity, access to low cost pharmaceuticals becomes paramount in the effort to provide access to underserved populations," said Bill Larkin, senior vice president, Pharmacy Services for GNYHA. "The 340B program provides an invaluable tool contributing towards that end."

"Novation is pleased to assist the members it serves to access the deep discounts on outpatient drugs available through the Prime Vendor Program," said Larry McComber, vice president, Pharmacy, for Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC). "We will encourage all qualifying VHA and UHC members to enroll in the program."

340B Prime Vendor Program

The Prime Vendor Program was established to increase the discounts already offered under Section 340B of the U.S. Public Health Service Act, providing low-cost drugs to clinics, hospitals and programs for low-income Americans. 11,800 providers across the country qualify to participate in the discount program at no cost, and more than 1,000 facilities are currently enrolled. HealthCare Purchasing Partners International, an Irving, Texas-based health care group purchasing organization co-owned by VHA Inc. and the University HealthSystem Consortium, administers the program. Visit the Section 340B Prime Vendor Program website at for more information about the program.

Contact Information

  • Contacts:
    Kristin Lucido
    Director, Public Relations
    340B Prime Vendor Program