Purchasing & Inventory Management Flashcards

Under the 340B program, which inventory management method uses a single physical stock for both 340B and non-340B drugs, with software tracking eligibility at the point of dispensing?

Answer: Virtual inventory

Virtual inventory (also called virtual replenishment or commingled inventory) uses software to track 340B eligibility without physically separating drug stock.

A 340B covered entity purchases a drug at WAC and later replenishes it at the 340B price. This is the basis of which inventory model?

Answer: Replenishment

In the replenishment model, drugs are initially purchased at non-340B prices and later replenished at the 340B price after a qualifying patient encounter is confirmed.

Which federal requirement prohibits a 340B covered entity from obtaining a discounted 340B drug AND a Medicaid rebate for the same drug dispensed to the same patient?

Answer: Duplicate discount prohibition

The duplicate discount prohibition in the 340B statute prevents covered entities from receiving both a 340B discount and a Medicaid rebate on the same drug transaction.

A 340B hospital has a mixed-use oncology infusion area where both 340B-eligible and non-eligible patients are treated. Which documentation practice is essential to maintain compliance?

Answer: Maintain encounter-level records linking each drug to patient eligibility

Mixed-use areas require encounter-level documentation to demonstrate that each 340B drug dispensed was linked to an eligible patient encounter.

Under HRSA guidance, which of the following is the primary responsibility of a 340B covered entity when using a contract pharmacy?

Answer: The covered entity retains ultimate compliance responsibility

Regardless of contract pharmacy arrangements, the covered entity retains full compliance responsibility for all 340B transactions processed through its contract pharmacies.

What is the term for a 340B drug that is diverted to a patient who does not meet the program's definition of an eligible patient?

Answer: Diversion

Diversion occurs when a 340B-priced drug is dispensed to a patient who is not eligible under the program, violating the statute.

Which document must a 340B covered entity submit annually to HRSA to maintain program participation and ensure inventory data accuracy?

Answer: Annual recertification

Covered entities must complete annual recertification through HRSA's Office of Pharmacy Affairs Information System (OPAIS) to confirm ongoing eligibility and data accuracy.