LockedCase study · 16 min
Hospital 340B Math
A hospital’s 340B spread on a brand — and why that number shows up in the manufacturer’s net-price report.
A DSH hospital’s 340B margin is the difference between the 340B acquisition cost and the reimbursement it actually collects. That margin is why the program grew, and why manufacturers write restrictions.
The case uses a hospital outpatient mix and a contract-pharmacy mix so the two channels can be compared on one slide.
Key takeaways
- Hospital margin is the program
- Outpatient and contract pharmacy differ
- Net price absorbs the spread