The Centers for Medicare and Medicaid Services created the 340B program in 1992 to help vulnerable or uninsured patients access prescription medications. The program allows critical access hospitals, including East Adams Rural Healthcare, to access prescription medications from manufacturers at reduced prices for outpatient prescriptions. This federally-funded program is administered by the Office of Pharmacy Affairs within the Health Resources and Services Administration.

East Adams Rural Healthcare works with Ritzville Drug and a third-party administrator to participate in the 340B program. There are no additional procedures that patients follow. Patients have their prescriptions filled as usual, their Medicare or commercial insurance plan pays the same amount they normally would.

Reduced prices allow East Adams Rural Healthcare to receive approximately $100,000 annually after processing fees paid to Ritzville Drug and the administrator.

East Adams Rural Healthcare uses the 340B cost savings to supplement financial assistance discounts for the uninsured and underinsured and for equipment needed for patient care, treatment, diagnostics, safety or facility needs.