Section 340B(a)(8) of the Public Health Service Act requires the creation of a prime vendor program (PVP). The purpose of the PVP is to develop, maintain, and coordinate a program capable of distribution, facilitation, and other activities in support of the 340B Program. The PVP is a voluntary program for 340B covered entities and serves its participants in three primary roles:
- Negotiating sub-340B pricing on pharmaceuticals;
- Establishing distribution solutions and networks that improve access to affordable medications; and
- Providing other value-added products and services.
All covered entities may participate in the PVP, including hospitals that are prohibited from purchasing in a group purchasing arrangement.