Minnesota providers earned $630M in 340B revenue in 2023

Minnesota providers participating in the federal 340B Drug Pricing Program generated at least $630 million in net revenue in 2023, according to a new report from the state Department of Health. 

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The program, which allows qualifying healthcare providers to purchase outpatient drugs at discounted prices, is a significant source of funding for many healthcare organizations in the state. 

Here are four key takeaways from the report:

  1. The state’s largest 340B hospitals accounted for about 80% of the total revenue, amounting to roughly $500 million. These hospitals made up just 13% of the reporting entities but filled the majority of prescriptions under the program. 
  2. Federally qualified health centers and similar safety-net clinics generated the least revenue from the program.
  3. The report showed that approximately $87 million, or 14% of total net 340B revenue, was generated through payments from Minnesota’s Medicaid programs.
  4. Covered entities paid more than $120 million to third-party administrators and contract pharmacies, representing 16% of the gross 340B revenue generated. 

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