Bausch Health wordmark seen through eyeglass lens
Bausch Health has imposed conditions on 340B pricing when all covered entity types—hospitals and grantees alike—use contract pharmacies.

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Bausch Health Announces 340B Contract Pharmacy Restrictions on All Covered Entities

Bausch Health this afternoon became the 18th drug manufacturer to impose conditions on 340B pricing when covered entities use contract pharmacies. The restrictions apply to all entities; there is no exemption for federal grantees.

According to Bausch’s announcement, effective Aug. 1, entities can place bill to / ship to replenishment orders for delivery to more than one contract pharmacy only if the entities submit 340B claims through industry vendor 340B ESP. Entities must submit claims within 45 days of the dispense date.

Entities lacking an in-house pharmacy may designate a single contract pharmacy using the 340B ESP platform. Contract pharmacies that are wholly owned by an entity or have common ownership with a health system remain eligible to receive bill to / ship to replenishment orders.

An increasing number of covered entities have expressed frustrations with the 340B ESP process as well as with pharmaceutical manufacturers that have placed a myriad of rules to gain or restore access to 340B pricing. These complaints include a significant delay in the restoration of discounts and a growing burden in complying with claims submission requirements.

Bausch specializes in eye health, gastrointestinal diseases, and dermatology. It is based in Canada and has its U.S. headquarters in New Jersey.

According to an FAQ that Bausch included with its announcement, its new policy applies to all Bausch branded and unbranded products.

Unlike other companies that have announced similar policies, Bausch does not state a reason for its policy or say how it will use entities’ claims data.

“In support of a smooth transition to our new distribution model, 340B covered entities should work with their contract pharmacy administrators and wholesalers to process any outstanding Bill To / Ship To replenishment orders in advance of the August 1st, 2022 effective date,” Bausch’s email said. “340B contracts administered by our wholesalers will no longer support distribution of 340B purchased drugs to 340B contract pharmacies after July 31st, 2022.”

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