340B Program

The 340B program is a federal initiative that requires pharmaceutical manufacturers to provide outpatient drug discounts to qualifying healthcare organizations. Established in 1992, the program’s goal is to help stretch "safety-net" providers’ limited resources, reduce medication costs, and expand healthcare services to underserved populations. The 340B Program has no impact to taxpayers.

Our 340B Story

Ridgecrest Regional Hospital is eligible to participate in the 340B program because it is classified as a rural, Critical Access Hospital, 93 miles from the closest alternative healthcare services. It serves approximately 40,000 high desert residents and workers at Naval Air Weapons Station China Lake. The hospital is a nonprofit, full service, acute care hospital and is accredited by DNV Healthcare.

The hospital is a 196 bed facility, including 25 inpatient and 125 Skilled Nursing Facility beds. Its outpatient services include primary and specialty care, offered to a diverse patient population. RRH was awarded the ACR Gold Seal of accreditation in Radiology & Nuclear Medicine. The hospital has installed state-of-the-art automated ultrasound breast screening technology, clinically proven to increase cancer detection by 35.7 percent. The hospital’s Emergency Department has been designated a Level IV Trauma Center by Kern County Public Health, providing stabilization and advanced trauma life support 24/7/365.

Benefits of the 340B Program

Savings from participating in the 340B Program affords patients the high quality of care they deserve, no matter their income level or insurance coverage. The cost savings from reduced drug pricing represent a key factor in the continuum of care, enabling a rural safety-net hospital to provide an array of needed treatments and services, including:

• The 340B program allowed partnering with Kern County to build a crisis stabilization unit for acute mental health issues as the nearest facility is over two hours away.
• The 340B program allowed subsidizing children's dental services after the community college and county could no longer fund the program.
• The 340B program allowed the hospital to take over the community senior services program when the previous organization ran out of funds. The program supports senior independence with information, assistance, case management, and homemaker services.
• The 340B program allowed the hospital to launch a school-based mobile health program targeting underserved children without transportation attending school nine miles away from healthcare services.
• Supports Oncology Care Coordination to ensure residents get the care they need because the hospital can no longer provide it locally.

340B Savings Impact

Savings derived from the 340B program have allowed Ridgecrest Regional Hospital to:

• § Partner with Kern County to build a Crisis Stabilization Unit for acute mental health issues. Previously, the nearest facility was over two hours away.
• Subsidize children's dental services after the community college and county could no longer fund the program.
• Provide the community Senior Services program when the previous sponsor organization ran out of funds. The program supports senior independence with information, assistance, case management, and homemaker services.
• Launch a school-based Mobile Health Program, targeting underserved children without transportation attending school nine miles away from healthcare services.
• Provide Oncology Care Coordination, ensuring residents get the care they need when those services cannot be provided locally.

340B by the Numbers for Fiscal Year 2025

• § $1,785,801 Approximate savings from the 340B program
• § $61,670,481 Medi-Cal/VA unreimbursed costs
• § $9,537,377 Uncompensated Care Costs (charity, bad debt, excluding Medicare)

Impact if 340B is Scaled Back

The 340B drug program is a vital lifeline for safety-net provider, supporting critical health services. Healthcare programs made possible by 340B are paid for with drug discounts, not taxpayer dollars. If 340B savings were reduced, the hospital would be forced to scale back services and physician outreach. This would result in increased transportation costs and travel time for patients with chronic health conditions, who would need to travel long distances to receive services the hospital could no longer provide. Lower-income and/or uninsured residents would be disproportionately harmed by such reductions in health care services.