Healthcare

340B Drug Pricing Program Savings

Recording the purchase of outpatient drugs at a significant federal discount.

Account NameTypeDebit ($)Credit ($)
Pharmacy InventoryAsset (+)400.00-
Cash / Accounts PayableAsset/Liability (-)-400.00

💡 Accountant's Note

The 340B program allows safety-net hospitals to buy drugs at steep discounts. When these are sold at normal insurance rates, the hospital captures a high margin to fund charity care.

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