340B

340B

Overview

340B is a discount drug program created by the U.S. Federal Government in 1992. 340B requires that drug manufacturers provide outpatient drugs to eligible healthcare organizations and/or covered entities at significantly reduced price. 340B hospitals must track medication purchases and administrations at the NDC level to be compliant and be allowed to purchase more of the drug at the reduced pricing. A hospital not properly tracking 340B drugs and the patients they are administered to can be required to repay the manufacturers, fined, or removed from the 340B program.

Safe Label System improves billing accuracy

Every medication prepared and labeled by SLS includes a barcode for integration with the electronic health record via BCMA (Bar Code Medication Administration) at the bedside or with the AIMS (Anesthesia Information Management System)/EHR (electronic health record) in the operating room to comply with 340B initiatives.

A total solution in the Operating Room

In the operating room, SLS-WAVE, an accessory to Safe Label System that makes it a total solution, integrates with the AIMS/EHR. SLS-WAVE is a robust and highly accurate “hands-free” scanner that electronically passes the NDC data from the  prepared syringe to the AIMS/EHR workspace. This improves billing accuracy, patient safety, ensures 340B compliance and – for the first time – extends BCMA to the operating room to close the loop, providing a complete and accurate report.

In the perioperative environment, the best way to acquire the exact NDC is with Codonics Safe Label System used in conjunction with Codonics SLS-WAVE as a complete solution.

The combination of SLS and SLS-WAVE ensures that hospitals have a complete, thorough and highly accurate report of the exact medications that were administered to the patient. Join the hundreds of hospitals who have implemented the award-winning Safe Label System as a standard of care.

How is an NDC acquired?

In order for hospitals to capitalize on 340B, it is imperative that they bill the patient for the exact NDC of the medications that were administered during the procedure. The most accurate way to do this is by electronically capturing the NDC as medications are administered to the patient.

The NDC can be acquired one of three ways:
  1. On the floors, medication containers and/or prepared and labeled medications that contain the NDC (such as syringes prepared by Safe Label System) can be scanned at the bedside.
  2. In the perioperative area, if Epic AIMS is used, Epic selects an NDC based on an algorithm it thinks is the correct NDC, or by
  3. Using Codonics SLS-WAVE, integrated with Epic or Plexus Anesthesia Touch, to scan an SLS labeled syringe in the OR.
Without the exact NDC

If a hospital is audited for 340B compliance, they need not prove that a specific NDC was administered, but must prove that they did not purchase more of that specific NDC on 340B than they accumulated administrations on 340B eligible patients. If facilities are not extremely diligent about updating medications as new NDCs come into pharmacy, old NDCs accumulate that they no longer purchase due to contract changes, shortages, or end of life. If incorrect NDCs are accumulated due to these changes, it is unlikely a facility will be able to use those accumulations to purchase medications at the 340B price. They must instead buy a non-accumulated NDC at the much higher WAC (wholesale acquisition cost) pricing. If inaccurate NDCs accumulate, pharmacy personnel have to invest a lot of time working backwards to find the errors and then update their AIMS (i.e. Epic). Not only is this extremely costly to the hospital, it’s also extremely time-consuming.

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