[Federal Register Volume 65, Number 27 (Wednesday, February 9, 2000)]
[Notices]
[Page 6383]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2862]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Notice Regarding HRSA Grant Requirement--Participation in the 
340B Drug Pricing Program

AGENCY: Health Resources and Services Administration, HHS.

ACTION: Notice.

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SUMMARY: The Health Resources and Services Administration (HRSA) is 
announcing its decision to withdraw the proposal to impose a grant 
award requirement that would have required HRSA grantees listed in 
section 340B of the Public Health Service Act and Federally Qualified 
Health Center (FQHC) Look-Alikes to participate in the 340B Drug 
Pricing Program or provide good cause for non-participation. Instead of 
the proposed grant requirement, HRSA will add a statement to the Notice 
of Grant Award (NGA) concerning the need for grantees to determine the 
appropriateness of their drug purchasing practices under applicable 
cost principles.

FOR FURTHER INFORMATION CONTACT: Captain Robert Staley, the Office of 
Drug Pricing, Bureau of Primary Health Care, Health Resources and 
Services Administration, 10th Floor, East West Towers, 4350 East-West 
Highway, Bethesda, MD 20814; Phone (800) 628-6297; Fax (301) 594-4982.

SUPPLEMENTARY INFORMATION: The proposed grant requirement for eligible 
HRSA grantee and FQHC Look-Alike participation in the 340B Drug Pricing 
Program was announced in the Federal Register at 63 FR 56656 on October 
22, 1998. A period of 60 days was established to allow interested 
parties to submit comments. HRSA received 21 comments. In light of the 
concerns expressed about the potential adverse impact of the proposed 
grant requirement, HRSA has decided not to institute the requirement at 
this time. Instead, HRSA will implement another administrative option 
to increase participation in the 340B Drug Pricing Program: a statement 
in the HRSA Notice of Grant Award (NGA) encouraging those grantees not 
participating in the 340B Program to determine whether their drug 
purchasing practices meet Federal requirements regarding reasonable and 
cost effective purchasing. (See 42 CFR part 50, subpart E, and OMB 
Circulars A-122 and A-87 regarding cost principles). If grantees can 
obtain drugs through the Drug Pricing Program at lower cost, it would 
be reasonable to take advantage of such cost savings. This policy will 
be implemented during the fiscal year (FY) 2000 grant award cycle.

    Dated: January 3, 2000.
Claude Earl Fox,
Administrator.
[FR Doc. 00-2862 Filed 2-8-00; 8:45 am]
BILLING CODE 4160-15-P