340B: A Federal Program Supporting Safety-Net Providers

The 340B prescription drug program supports Lompoc Valley Medical Center’s role as a safety-net provider in offering vital health care services for the communities it serves. Lompoc Valley Medical Center is part of the Lompoc Healthcare District, a diverse healthcare organization offering primary and specialty care, hospital services, outpatient services and more.

Lompoc Valley Medical Center has signed the American Hospital Association’s 340B Good Stewardship Principles agreement. The 340B Drug Pricing Program has been critical in helping hospitals expand access to lifesaving prescription drugs and comprehensive healthcare services in vulnerable communities across the country. It has a Congressional objective of reaching more eligible patients and providing more comprehensive services.

The340B program is narrowly tailored only for hospitals providing a considerable number of services to low-income individuals or those serving isolated, rural communities. The 340B hospitals – which include trauma centers, labor and delivery services, HIV-AIDS services and immunizations –provide significantly more money-losing but vital health services than non-340B hospitals.

Lompoc Valley Medical Center is eligible to participate in the 340B program because it provides care to a larger population of low-income Medicare and Medi-Cal (Medicaid) patients than other hospitals.

340B by the Numbers (Fiscal Year 2021)

  • $8.3 million: Cost of Lompoc Valley Medical Center's uncompensated care.
  • 33.84%:  Lompoc Valley Medical Center's Disproportionate Share Hospital (DSH) percentage. DSH hospitals such as Lompoc Valley Medical Center serve a significantly disproportionate number of low-income patients.
  • $403,689: Lompoc Valley Medical Center's 340B Savings for Fiscal Year 2021. 

Benefits of the 340B Program

 Savings realized through participation in the 340B program supports Lompoc Valley Medical Center’s ability to provide services to under-insured and uninsured patients, regardless of their ability to pay, and to address health care needs in the community. The 340B Program affords patients the high-quality care they deserve, no matter their income level or insurance coverage. The cost savings from reduced drug pricing represent a key factor in the continuum of patient care, enabling hospitals and health systems to provide an array of needed treatments and services, including:

  • Discharge prescriptions at no charge for uninsured and homeless patients
  • Ensuring continued local access to Hematology-Oncology services
  • Expanding the availability of local specialty physicians and services for our patients 
  • Medication Reconciliation program to ensure accurate medication histories for all patients seen at the hospital
  • Clinical pharmacy services to improve medication adherence and outcomes

Impact of Scaling Back the 340b Program

Scaling back the 340B Program would threaten Lompoc Valley Medical Center’s capacity to offer the services described above to our patients.