Avita, a leading provider of 340B contract pharmacy and third-party administration services geared toward HIV and LGBTQ+ communities, is expanding into medical practice staffing and management.
Avita announced Oct. 5 that it has acquired HIV/AIDS, LGBTQ+, and primary care health care provider AbsoluteCare’s Atlanta medical center and pharmacy. In a post on his company’s blog, Avita CEO Michael Yount said the purchase reinforces the company’s dedication to reducing health inequities and “is not a competitive threat to our covered entity partners.”
“Avita is not a 340B federal grantee, nor do we intend to be,” Yount wrote.
“During strategic discussions with our partners, we’ve learned that many covered entities are challenged to maintain regular access to providers, which can seriously impede their ability to fulfill their clinical missions and fully leverage 340B access dollars,” Yount explained. “Our acquisition of AbsoluteCare Atlanta is the first step in introducing a new element to Avita’s current offerings—the ability to provide our partners with access to a network of trusted providers upon request. This model does not compete with our partners but addresses a barrier that many of them unfortunately face and supplements their efforts to better serve their patients and communities.”
“Avita is not moving away from its commitment to pharmacy services and 340B administration,” Yount said. “Our dedication to providing our partners with pharmacy management and 340B expertise is stronger than ever.”
Avita’s clients include more than 320 Ryan White/STD grantees, AIDS service organizations, and community health centers. It has more than 60 pharmacies nationwide, most located onsite at 340B covered entity clients’ facilities and registered as 340B contract pharmacies. It also offers 340B program administration and patient support services.
“I cannot stress enough that we have no intention of becoming a nonprofit or becoming a 340B federal grantee,” Yount said in an interview. He explained that AbsoluteCare Atlanta employs physicians and other clinicians plus support staff who are leased to a 340B-enrolled federally qualified health center with seven metro Atlanta locations. Avita now “will manage the clinical business” for the FQHC “much like we manage the pharmacy business,” Yount said.
“We have seen that access to consistent, competent providers is unfortunately a challenge for many of our 340B federal grantees,” Yount said. “Given our expertise in managing the 340B program on the pharmacy side, we can extend that level of service and benefit to our covered entity partners on the clinical side.”
Avita’s acquisition of AbsoluteCare Atlanta is the latest in a series of business purchases nationally in the 340B sector. Avita is a 340B Report sponsor.
