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340B Program

About UCI Health

UCI Health serves a substantial population comprising nearly 4 million individuals in Orange County, western Riverside County and southeast Los Angeles County. As the sole academic health system in Orange County, UCI Health is committed to advancing medical knowledge, educating future healthcare professional, and delivering the highest-quality, evidence-based healthcare. The primary facility, UCI Medical Center in Orange, is a 450+ bed acute care hospital offering advanced tertiary and quaternary care services, as well as a range of ambulatory and specialty medical clinics, along with behavioral health and rehabilitation units. UCI Health is notable for being home to Orange County's only federally designated comprehensive cancer center, a specialized high-risk perinatal/neonatal program, and a verified Level I trauma center for adults and Level II trauma center for pediatric patients, in addition to being a regional burn center. It is also proud to have the county's inaugural Joint Commission-certified comprehensive stroke center.

UCI Health is eligible for participation in the U.S. government's 340B program, a program mandating pharmaceutical companies to offer outpatient drugs to eligible healthcare organizations at substantially reduced prices. This eligibility is based on its substantial service to low-income Medicare and Medicaid patients. 

In the fiscal year 2023, UCI Health provided approximately $80 million in charity care and approximately $99 million in uncompensated care, primarily focused on Medi-Cal beneficiaries and uninsured patients, aligning with the organization's financial assistance policy.

Given the absence of a county hospital, roughly 75% of the UCI Health patient base relies on government payers for insurance coverage. Notably, California possesses one of the nation's lowest Medicaid provider reimbursement rates, and the costs associated with specialty services often exceed the reimbursement received. Consequently, UCI Health bears the burden of uncompensated costs related to services in areas such as cancer care, trauma care, burn care, mental health services, organ transplant procedures and emergency care.
 

Direct and indirect benefits of the 340B Program

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Innovative care and technology

Colonoscopies that employ artificial intelligence for more accurate cancer testing

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Access to care for the medically underserved

Federally Qualified Health Centers in Santa Ana and Anaheim, primary care services, health screenings and vaccinations/immunizations targeted to uninsured and underinsured populations. Financial assistance for prescriptions and discharge medications. Transportation assistance for patients in need.

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Specialized and essential clinical services

Otherwise financially nonviable services, including kidney and pancreas transplants

Behavioral health services

Level I (adult) and Level II (pediatric) trauma services

Burn and emergency services

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Prevention, wellness and chronic disease support

Perinatal, cancer, obesity and chronic disease support groups

Preventive care and mental health services, including meditation programs

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Education, research and community engagement

Lectures by internationally renowned subject-matter experts on groundbreaking research and disease/treatment outcomes.

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Food security and social support

Access to fresh produce through the UC Irvine Family Health Center food pantry

Potential impact of scaling back the 340B Program

UCI Health operates as a self-sustaining institution and does not receive any operational funding from the state of California or the University of California system. Its primary sources of support are federally funded Medicaid DSH (Disproportionate Share Hospital) dollars and discounts obtained from drug manufacturers through the 340B program. These critical funds enable UCI Health to provide essential medical care to low-income and underserved patients facing severe medical conditions, regardless of their financial means.

The advantages derived from the 340B program empower UCI Health to offer clinical services that would otherwise be financially unfeasible, particularly to vulnerable patient populations. By realizing savings through the 340B program, UCI Health can extend access to medical facilities that deliver life-saving treatments for conditions such as cancer, HIV (Human Immunodeficiency Virus), hepatitis C, asthma, and kidney failure to Medicaid recipients and uninsured individuals. The absence of these funds would compel UCI Health to reduce the scope of its emergency medicine, trauma care, mental health services, and cancer treatments.

UCI Health improves access and outcomes for patients

Total charity costs from Care Management in 2025:

  • $175,000 spent on board and care placement
  • $75,000 spent on home health
  • $60,000 spent on intravenous antibiotics
  • $25,000 spent on outpatient medications
  • $18,000 spent on durable medical equipment and supplies

Cases

  • A 31-year-old man experiencing homelessness had multiple hospital admissions and discharges due to complex medical needs. He required ongoing wound care and intravenous antibiotics but had no safe housing or placement options. To support a safe discharge, UCI Health provided a five-month Letter of Agreement totaling $30,000 to cover placement in a board and care facility where he could receive appropriate care after discharge.
  • An 81-year-old man experiencing homelessness was living on the streets and had limited financial resources. Despite numerous referrals to skilled nursing facilities, no placements were available. With no family support and medically stable for discharge, UCI Health arranged a Letter of Agreement providing $5,000 per month for six months to support placement in a board and care facility.
  • A 50-year-old man with limited financial resources required ongoing wound care after discharge. To ensure he could safely recover at home, UCI Health provided a $1,800 Letter of Agreement to cover home health services, including wound care.
  • A 54-year-old woman with limited financial resources required intravenous antibiotics after discharge. To support a safe transition home with her family, UCI Health provided a $4,800 Letter of Agreement to cover home nursing services and necessary medications.
See a PDF of the 340B Program in action