Sole Community Hospitals

Eligibility

The Centers for Medicare and Medicaid Services (CMS) designate Sole Community Hospitals through Section 1886(d)(5)(D )(iii) of the Social Security Act.

To be eligible to participate in the 340B Drug Pricing Program, Sole Community Hospitals must:

• Meet the requirements of section 340B(a)(4)(L)(i) (PDF - 39 KB)
• Have a disproportionate share adjustment percentage greater than or equal to 8% for the most-recently filed cost report

Sole Community Hospitals must be classified as one of these:

• A private nonprofit hospital under contract with state or local government to provide health care services to low-income individuals who are not eligible for Medicare or Medicaid
• Owned or operated by a unit of state or local government
• A public or private nonprofit corporation that is formally granted governmental powers by a unit of state or local government

For-profit hospitals aren't eligible to participate in the 340B Program.

Eligibility in multiple categories

Hospitals that are eligible to participate in the 340B Drug Pricing Program in more than one category must select only one. For example, a hospital that is both as a Disproportionate Share Hospital and a Sole Community Hospital must choose only one category and must abide by requirements and guidelines for that category of eligible organization/covered entity once enrolled.

340B registration

Register Online