Group Purchasing Organization (GPO) Participation
A group purchasing organization (GPO) is an entity that helps health care providers-such as hospitals, nursing homes and home health agencies-realize savings and efficiencies by aggregating purchasing volume and using that purchasing power to negotiate discounts with manufacturers, distributors and other vendors.
Hospitals and other health care providers use group purchasing to obtain the right products at the very best price. About 72 percent of purchases that hospitals make are done using GPO contracts. The US healthcare industry spends $200+ billion annually in medical and non-medical products with more than 70% purchased through a GPO. GPOs save hospitals and free standing nursing homes between 10 to 15 percent off their purchasing costs. Additionally, GPOs provide valuable cost-avoidance savings to hospitals and other providers by helping them standardize and streamline their purchasing, as well as negotiate purchasing contracts.
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Which States participate?
Is your facility eligible?
Contact MMCAP...
View MMCAP Contracts...
View MMCAP Contract Updates...
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Minnesota Multi-state Contracting Alliance for Pharmacy (MMCAP) The Pharmaceutical Cost Management Council (through the Governor's Pharmaceutical Advocate Office) participates on behalf of member State hospitals and County Health Departments in a Group Purchasing Organization; the Minnesota Multi-State Contracting Alliance for Pharmacy known as MMCAP.
MMCAP is a voluntary group purchasing organization operated by the State of Minnesota serving government-based healthcare facilities. The goal of MMCAP is to provide member organizations the combined purchasing power of all MMCAP members to receive the best prices available for pharmaceuticals, medical supplies, and related products.
MMCAP member facilities purchase over $1 billion per year and have national account status with all of the major brand name and generic pharmaceutical manufacturers.
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Learn how to place an order...
Contact Cardinal Health... |
Cardinal Health
The Pharmaceutical Cost Management Council (through the Governor's Pharmaceutical Advocate Office) on behalf of member State hospitals and County Health Departments uses Cardinal Health as the designated distributor for MMCAP in West Virginia.
Cardinal Health is an $87 billion global manufacturer and distributor of pharmaceuticals, medical and surgical supplies, and technologies dedicated to making healthcare safer and more productive.
Cardinal Health makes more than 50,000 deliveries each day to 40,000 customer sites including hospitals, medical centers, retail and mail-order pharmacies, clinics, physicians, pharmacists, and other healthcare providers and points of care located on five continents. One third of all pharmaceutical, laboratory, and medical products flow through Cardinal Health's logistical system and 90 percent of all hospitals and 50 percent of surgeries in the United States use Cardinal Health products or services.
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U.S. Department of Health and Human Services Health Resources and Services Administration Healthcare Systems Bureau Office of Pharmacy Affairs
Pharmacy Affairs & 340B Drug Pricing Program |
The 340B Drug Pricing Program limits the cost of covered outpatient drugs to certain federal grantees, federally-qualified health center look-alikes and qualified disproportionate share hospitals. Significant savings on pharmaceuticals may be seen by those entities that participate in this program.
In addition to the cost savings available through the 340B Program, the 340B Prime Vendor Program (PVP) provides additional savings to 340B participants registered with the Prime Vendor. The PVP is managed by Apexus Inc.® (formerly HPPI) through a contract awarded by HRSA. The mission of the PVP is to improve access to affordable medications for all 340B covered entities. The program currently provides access to 340B sub-ceiling prices for over 2,800 drug products, access to multiple wholesale distributors at favorable rates, and access to other related value-added products. The PVP is free to all 340B covered entities, but the covered entity must enroll in the PVP. For more information, visit the PVP website or call 1-888-340-2787.
The Pharmacy Services Support Center (PSSC) is a non-profit organization based at the American Pharmacists Association (APhA). This resource was established in 2002 through a contract with HRSA to assist eligible safety-net providers optimize the value of the 340B Program. The organization’s primary mission is to bring comprehensive pharmacy services to patients at 340B-eligible health care delivery sites to improve medication use and advance patient care. PSSC provides program guidance and free technical assistance to all 340B covered entities. To find out more, or to request technical assistance, visit the PSSC website or call 1-800-628-6297.
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Contact the Prime Vendor
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340B Prime Vendor Program
The primary mission of the 340B Prime Vendor Program is to improve access to affordable medications for covered entities and their patients. The program is free and voluntary to facilities that are already 340B eligible.
If you are actively enrolled and/or participating in the 340B Drug Pricing Program (ordering your outpatient medications at 340B Public Health Service pricing), you are entitled to join the 340B Prime Vendor Program at no cost.
The prime vendor program serves participants in 3 primary roles:
- Negotiates sub-ceiling 340B pricing on branded and generic pharmaceuticals
- Establishes distribution solutions and networks that improve access to affordable medications
- Provides other value-added products and services
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Program Updates
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340B Drug Pricing Program
The 340B Drug Pricing Program is a federal program that requires drug manufacturers to provide outpatient drugs to dligible health care centers, clinic, and hospitals (termed "coverd entities") at a reduced price. This requirementis described in Section 340B of the Public Health Service Act, which was enacted in 1992 to provide finacial relief to those facilities that provide care to the medically underserved.
Organizations eligible for the 340B discount
(A) Federally-qualified health center (as defined in section 1905(l)(2)(B) of the Social Security Act). This category includes:
- FQHC Look-alikes
- Consolidated Health Centers (Sec.330(e) Public Health Service Act)
- Migrant Health Centers (Sec.330 (g) Public Health Service Act)
- Health Care for the Homeless (Sec.330(h) Public Health Service Act)
- Healthy Schools/Healthy Communities
- Health Centers for Residents of Public Housing (Sec. 330(i) Public Health Service Act)
- Office of Tribal Programs or urban Indian organizations (P.L. 93-638 and 25 USCS §1651)
(B) A family planning project receiving a grant or contract under Sec. 1001 PHSA (42 USCS§3001)
(C) An entity receiving a grant under subpart II of part C of Title XXVI of the Ryan White Care Act (RWCA) (relating to categorical grants for outpatient early intervention services for HIV disease) - Early HIV Intervention Services Categorical Grants (Title III of the RWCA)
(D) A State-operated AIDS Drug Assistance Program (ADAP) receiving financial assistance under the RWCA
(E) A black lung clinic receiving funds under Section 427(a) of the Black Lung Benefits Act (30 USCS§901)
(F) A comprehensive hemophilia diagnostic treatment center receiving a grant under section 501(a)(2) of the SSA
(G) A Native Hawaiian Health Center receiving funds under the Native Hawaiian Health Care Act of 1988 (42 USCS§11701)
(H) An urban Indian organization receiving funds under title V of the Indian Health Care Improvement Act (25 USCS§1601)
(I) Any entity receiving assistance under title XXVI of the Social Security Act (other than a State or unit of local government or an entity described in subparagraph (D)), but only if the entity is certified by the Secretary
(J) An entity receiving funds under section 318 (42 USCS §247c) (relating to treatment of sexually transmitted diseases) or section 317(j)(2) (42 USCS§247b(j)(2)) (relating to treatment of tuberculosis) through a State or unit of local government, but only if the entity is certified by the Secretary
(K) A disproportionate share hospital (as defined in section 1886(d)(1)(B)) of the SSA -
(i) is owned or operated by a unit of State or local government, is a public or private non-profit corporation which is formally granted governmental powers by a unit of State or local government, or is a private non-profit hospital which has a contract with a State or local government to provide health care services to low income individuals who are not entitled to benefits under title XVIII of the Social Security Act or eligible for assistance under the State plan under this title; (ii) for the most recent cost reporting period that ended before the calendar quarter involved had a disproportionate share adjustment percentage (as determined under section 1886(d)(5)(F) of the Social Security Act) greater than 11.75 percent or was described in section 1886(d)(5)(F)(i)(II) of such Act; and (iii) does not obtain covered outpatient drugs through a group purchasing organization or other group purchasing arrangement.
If your organization is an eligible program or DSH, you must submit a request to participate to the Office of Pharmacy Affairs (OPA) with your Medicaid billing information and the appropriate form:
Keep Covered Entity Information Up to Date
It is very important that OPA have information that is accurate and up to date, particularly the covered entity's exact name and street address. It is the responsibility of each covered entity to contact the OPA with any changes.
While the entity is eligible to participate in the program by virtue of its status, it must notify the OPA of its intention to participate by completing and submitting the appropriate registration form. Once the OPA receives this information, the entity will be eligible to receive pharmaceuticals at the 340B discounted price at the beginning of the next calendar quarter. The quarterly deadlines for data submission to OPA are December 1 for the quarter beginning January 1; March 1 for the quarter beginning April 1; June 1 for the quarter beginning July 1; and September 1 for the quarter beginning October 1. It is the entity's responsibility to tell its wholesaler or manufacturer that it is registered for 340B discount prices when it places an order.
If you have any questions regarding this program, please call the HRSA Pharmacy Services Support Center, 800-628-6297.
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