340B: The Unintentional Hospital and Pharmacy Profit Stream That Was Supposed to Help Patients, PHrma.Org. What is 340B or Section 340B? As explained by the American Hospital Association, Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to health care organizations. Those are the organizations caring for many uninsured and low-income...
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