MSO Wins Rhode Island 340B Contract

The AmeriChoice Management Service Organization (MSO) has been awarded a contract by the Rhode Island Department of Human Services to develop and guide the implementation of a broad scale 340B program for the state’s vulnerable populations that are served through Rhode Island’s largest health programs and agencies.

Section 340B of the U.S. Public Health Services Act provides medically and financially vulnerable populations with greater access to lower cost drugs by offering steep discounts to the covered entities that serve these populations.

Covered entities include Federally Qualified Health Centers, homeless clinics, disproportionate share hospitals, hemophilia centers and family planning clinics.

National studies have shown that a typical 340B discount represents an average cost savings of 30 percent across all drug categories when compared to Medicaid. This presents an opportunity for states to improve access to needed medications while allowing for significant cost savings.

Among the MSO’s responsibilities under the contract are stakeholder outreach, strategic infrastructure development and supporting the creation of a 340B inventory management system, said David McNichols, AmeriChoice Senior VP, Marketing, Sales and Business Development.

“The MSO conducted a feasibility study that will guide the decision making about contractual relationships with providers,” McNichols said.

The MSO also will guide state staffers in developing an electronic inventory management system.

AmeriChoice MSO Director of Implementation Flint Michels met with representatives from the U.S. Dept. of Health and Human Services to ensure the precise communication of reporting requirements to the state.

The MSO expects to hold discussions with provider groups to evaluate new contractual relationships and collaborate with key State staff to develop an integrated 340B strategy.

“With growing budget deficits, many states are actively pursuing options such as 340B to obtain lower cost drugs for their most at-risk populations,” Michels said. “Our plan is to establish a model program that other states can adopt to provide lower cost drugs for many of their state-funded programs.”