The 340(b) Program: A Profit Center for Pharmacies and Hospitals

In 2003  the Center for Regulatory Effectiveness (CRE) issued a report on the  340(b) program in which it stated:

Drug diversion, and the intertwined crimes of adulteration and counterfeiting, is a widely recognized threat to public health. Drug diversion occurs when prescription pharmaceuticals do not follow the proper distribution chain from manufacturer to patient.

OPA has not established regulations requiring 340B entities to report on their transactions or otherwise demonstrate that all of the specially-discounted medications were used only on patients allowed by the law despite concerns expressed to the agency that failure to institute such requirements could lead to drug diversion.

See  dirty-deals

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