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340B Program

UC San Diego Health offers inpatient and specialty care in La Jolla and Hillcrest, as well as primary, urgent and Express Care at clinics conveniently located throughout San Diego. As the region's only academic medical center, our doctors take care of the sickest and most complex patients, conduct research to advance medicine, and train the next generation of physicians.

We serve as a provider of care for many complex diseases, including solid organ transplantation, cardiac care, HIV, dialysis, chronic kidney disease, and other services. Our hospital also includes the only NCI-designated comprehensive cancer center in the region and the only TJC Certified Comprehensive Stroke Center in a Disproportionate Share Hospital (DSH) facility. It also provides space to house the statewide poison center. Our ambulatory services provide primary and specialty care to a diverse urban and rural population.

We are also recognized for our participation in the 340B prescription drug program, which is a vital lifeline for safety-net providers and their patients.

340B: A Federal Program Supporting Safety-Net Providers

The 340B prescription drug program is narrowly tailored to reach healthcare organizations that provide a high level of services to low-income individuals or that serve isolated rural communities. This program requires pharmaceutical manufacturers to provide outpatient drugs at significantly discounted prices to these qualifying organizations. 

Significantly more 340B hospitals provide money-losing vital health services than non-340B hospitals, which include trauma centers, labor and delivery services, HIV-AIDS services, and immunizations.

340B by the numbers (Fiscal Year 2022)

  • $315 million – Approximate annual 340B savings that benefit UC San Diego Health patients
  • 28.38% – UC San Diego Health's Disproportionate Share Hospital (DSH) percentage
  • $169.1 million – Loss incurred by providing access to care for Medi-Cal recipients
  • $75.9 million - Amount provided for community health improvement services, financial assistance, subsidized health services, cash & in-kind contributions, charity care, and health education & training

Benefits of the 340B Program

340B savings provide substantial support and allow UC San Diego Health to provide an array of needed treatments and clinical services, including:

  • Discounted and no-cost outpatient prescriptions for low-income and uninsured patients
  • Medication therapy management services and additional clinical staff to improve patient outcomes and reduce hospital admissions
  • Home infusion drugs and nursing services at discounted or free rates
  • Uncompensated acute and ER services for patients who are uninsured or underinsured

Potential Impact of Scaling Back the 340B Program

If the 340B program were to be altered, hospital discharge prescription services could be eliminated which could result in readmissions or poor outcomes. UC San Diego Health may have to eliminate specialty pharmacy and chronic care prescription services, disease management services, and home infusion services.