Purchasing & Inventory Management Flashcards
7 cards from real ACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Purchasing & Inventory Management flashcards as text
A disproportionate share hospital (DSH) is prohibited from using which purchasing arrangement for covered outpatient drugs under the 340B program?
Answer: Group purchasing organization (GPO) contracts
DSH hospitals (and certain other covered entities) are prohibited from purchasing covered outpatient drugs through GPO contracts while also participating in 340B for those same drugs.
In the context of 340B inventory management, what does 'accumulation' refer to?
Answer: Tracking eligible patient encounters before purchasing drugs at 340B prices
Accumulation involves building up a sufficient volume of 340B-eligible patient encounters before executing a bulk 340B purchase, often used in virtual inventory systems.
Which type of covered entity is subject to the orphan drug exclusion under the 340B statute?
Answer: Children's hospitals, free-standing cancer hospitals, and critical access hospitals
The orphan drug exclusion applies to children's hospitals, free-standing cancer hospitals, critical access hospitals, rural referral centers, and sole community hospitals — not to FQHCs or Ryan White grantees.
A 340B covered entity's wholesaler invoice shows the drug was billed at WAC instead of the 340B ceiling price. What is the most appropriate immediate action?
Answer: File a dispute with the manufacturer through HRSA's dispute resolution process
When a manufacturer charges above the 340B ceiling price, the covered entity should initiate the manufacturer dispute resolution process established by HRSA.
What is the maximum number of contract pharmacy arrangements a covered entity with an in-house pharmacy may typically register under current HRSA policy?
Answer: No limit; unlimited contract pharmacies allowed
Historically, HRSA allowed unlimited contract pharmacy registrations, though recent manufacturer restrictions have limited access — the statutory rule itself has no numerical cap.
Which of the following best describes 'split billing' software in a 340B context?
Answer: Technology that identifies and separates 340B-eligible from non-eligible drug purchases at the point of dispensing
Split billing software evaluates each prescription at the point of dispensing and determines whether the patient and encounter qualify for 340B purchasing, flagging eligible transactions accordingly.
Under the 340B program, a covered entity's child site must be registered in OPAIS to purchase drugs at 340B pricing. Which of the following is NOT a valid child site type?
Answer: Inpatient ward of a registered hospital
340B benefits apply only to covered outpatient drugs; inpatient wards are not eligible child sites because drugs dispensed to inpatients do not qualify under the program.