HRSA Allows Special Exception for Hospitals Filing for 340B Eligibility - November 15, 2011

The Health Resources and Services Administration (HRSA) has allowed a special exception for 340B eligible hospitals that are currently adding new outpatient facilities. Previously, 340B hospitals with Medicare cost reporting periods ending on or before April 30, 2011, that wanted to add outpatient facilities and submit their cost reports to HRSA before its Sept. 1 deadline, were unable to do so because of a pending Medicare hospital cost report update. HRSA has been working with the Centers for Medicare & Medicaid Services (CMS) and is aware that CMS is still in the process of updating the Medicare cost report. Therefore, HRSA is allowing these hospitals to submit their cost report information relevant to the 340B program by using the previous year’s cost report forms. The forms will only be used for 340B purposes and will not be filed with CMS. Once the forms have been submitted and approved by the HRSA Office of Pharmacy Affairs (OPA), the outpatient site will be enrolled immediately in the 340B program, rather than having to wait until the next calendar year quarter. In order to appropriately verify the information submitted, OPA will also require the hospital to re-submit the cost report data it submits to CMS for the same cost reporting period once the new cost report system is available for each of the approved 340B sites. HRSA will investigate any discrepancies at that time. Qualifying hospitals have until Dec. 1 to file with OPA for this exception.