340B Drug Pricing Program

Discount drug program means more support for our patients and community

The 340B program requires pharmaceutical manufacturers to sell certain outpatient drugs at a discount to eligible health care providers. This includes safety net health systems like VCU Health. Congress created the program in 1992 to allow providers to “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”

We saved approximately $121 million in Fiscal Year 2022 through the 340B program. Additionally, by virtue of our partnership with the Virginia Department of Corrections, we were able to pass drug purchase savings of over $20 million to the Commonwealth of Virginia. These savings help support our commitment to making care more accessible and affordable to the patients we serve. VCU Health System is proud to be the largest provider of care to Medicaid and uninsured patients in the Commonwealth of Virginia.

We improve patients’ health within the hospital and in our communities

Coordinated, Community Care

VCU Health’s 340B program savings help support our coordinated, community care model, which targets the needs of our most medically complex patients. The model includes core care coordination teams of medical outreach workers/community health workers, social workers and RN case managers across the health system. A core team in the Emergency Department identifies and helps link patients to community resources and facilitates primary care follow-up as needed. VCU Health’s Ambulatory Care Center, 2nd Floor, and the Center for Advanced Health Management (CAHM) serve as medical homes that can provide ongoing care to these medically complex patients.

Adult Outpatient Pavilion

The Adult Outpatient Pavilion opened its doors in December 2021 and is located in the heart of our downtown Richmond medical campus. This state-of-the art facility brings together VCU Health’s adult outpatient care services in one building that is accessible, easy to find, and easy to navigate.

Children's Hospital of Richmond at VCU

The Children’s Tower, our new home for pediatric inpatient, emergency and trauma care, will open in Spring 2023. Situated immediately adjacent to the Children’s Outpatient Pavilion, this 500,000-square-foot inpatient facility will make care more accessible to children across Virginia, including children insured through Medicaid as well as the uninsured. After the opening of the Children’s Tower, VCU Health will be proud to boast an entire block of care solely devoted to the needs of our youngest patients.

Community Memorial Hospital

VCU Health’s new Community Memorial Hospital opened its doors in October 2017. The new building is the first medical facility erected in South Hill since 1954. The 167,000-square-foot facility includes 70 private patient rooms and provides much-needed access to health care in Virginia’s rural Southside region.

Discounted Medications

Qualifying patients get discharge medications at no cost and may receive refills for $4 at our pharmacies. Nearly 1,700 patients received 16,700 discounted or free medications in 2021. With 8 pharmacies, we’re able to reach our patients who need this the most. 

Virginia Supportive Housing Partnership

Our medically complex patients, like those living with sickle cell disease, benefit from our partnership with Virginia Supportive Housing. VCUHS established this partnership to provide permanent housing and supportive services for those who need it most, which has led to reductions in readmissions and non-emergent ED visits for uninsured and underinsured patients.

Medical-Legal Partnership

Some circumstances make health problems more difficult to manage. Qualifying patients and families can get free legal advice and representation with our Medical-Legal Partnership (MLP) Program. MLP helps patients access and maintain housing, employment, public benefits and more, so you can focus on your health.

An MLP Success Story: Adrian Gant

Takia Gant, whose four-year-old son Adrian has cerebral palsy, hypertrophic obstructive cardiomyopathy, and chronic lung disease, knows firsthand the importance of legal assistance as a part of comprehensive health care. When her apartment had an unpleasant smell and was overrun with rodents, her already-fragile son experienced a reoccurring illness. She tried many times to get the general manager to take action without success. Adrian’s pediatrician, Tiffany Kimbrough, M.D. at CHoR, referred Gant to MLP-Richmond.

“Within a month, the attorney got us out of the apartment and into a new one. She even got my rent reduced at the new apartment to match what I was paying before,” Gant said. Since then, the family has not experienced any major issues with their housing, and Gant shared that things have been much better for her and Adrian. They moved once more in the fall of 2020 and have lived in that apartment for the past two years.

Adrian’s health is also much improved. He’s no longer on supplemental oxygen and is attending school, where he’s been learning body parts and colors. His mom reports that he is a goofy, loveable kid.

340B Program Oversight

We are dedicated to 340B program oversight and compliance. Our oversight committee routinely meets to review program updates and provide internal oversight. We also employ routine controls, such as auditing, monitoring and education, to ensure compliance with the 340B program.