Safety net providers are essential to the U.S. healthcare system, delivering care to patients regardless of their ability to pay. This includes individuals who are uninsured, underinsured, enrolled in Medicaid, or part of other vulnerable populations.

To support these providers, the 340B Drug Pricing Program was established in 1992. It requires drug manufacturers to provide outpatient drugs to eligible healthcare providers – known as covered entities – at significantly reduced costs. By participating in this program, safety net providers can stretch scarce federal resources, serve more patients in need, and deliver broader, more comprehensive healthcare services.