Stretching Scarce Federal Resources: How Conway Medical Center Is Redefining 340B’s Impact

by Howard Hall, SVP Enterprise Growth, Maxor

The purpose of the 340B Drug Pricing Program continues to spark debate, particularly between covered entities (CEs) and some in the pharmaceutical industry. Questions remain about its scope, including the role of contract pharmacies and the definition of a patient. Legal disputes persist, and the 340B community is still awaiting clearer guidance on implementation and enforcement.

But amid the legal noise, a more important question emerges: How are covered entities using 340B savings to stretch limited federal resources in innovative, community-centered ways?

Starting with the mission

At its core, the 340B program exists to help providers serve their communities and improve health outcomes. It’s not just about lowering the cost of prescriptions; it’s about enabling long-term, sustainable change. To fully understand the program’s value, we must look beyond the pharmacy counter.

Beyond the pharmacy counter

Why restrict 340B’s impact to cost savings alone when it can help transform community health?

That’s the question Conway Medical Center (CMC), a 222-bed disproportionate share hospital in Conway, South Carolina, set out to answer. Their approach exemplifies how 340B savings can drive measurable, mission-aligned change.

The Conway model: From coverage to community health

CMC operates a high-performing retail pharmacy and a purpose-driven 340B program. In 2021, then-CFO (now CEO) Brian Argo launched an internal analysis to assess the financial and clinical impact of hospital readmissions—and what more could be done. The findings were eye-opening:

• Of 495 readmitted claims across 11 DRGs, 274 were reimbursed at a loss, totaling $825,000.
• Uninsured readmissions added $1.5 million in uncompensated care.

CMC could have used 340B savings to simply cover the shortfall. But they chose a more impactful path.

Strategic reinvestment: A pharmacy-led readmission initiativ

Rather than plug budget gaps, CMC reinvested its 340B savings into a pharmacy-driven initiative to reduce hospital readmissions, especially among high-risk and uninsured patients. They hired a clinical pharmacist to enhance their Bedside Discharge Program and developed a proactive 30-day post-discharge engagement strategy. Using data analytics, they identified key risk groups:

• Patients with >2 hospital visits/year had a 35% 30-day readmission rate.
• Those with 3+ visits faced a 47% readmission rate.
• Patients with uncontrolled A1C levels had a 19.7% readmission rate.

These patients were flagged at admission. The pharmacist performed in-hospital medication reconciliation, ensured access to discharge medications regardless of ability to pay, and maintained contact through follow-up calls and texts for 30 days. Case management was engaged when needed.

The results

In just six months, the outcomes were dramatic:

• Readmissions among the 3+ visit group dropped to 10.7% – a 77% reduction.
• Readmissions for patients with uncontrolled A1C levels fell to 1.4% – a 93% reduction.
• Patient satisfaction averaged 9.66 out of 10.

CMC didn’t just absorb the cost of readmissions. They helped prevent them. They used their 340B program not just to fill prescriptions, but to advance population health.

Fulfilling 340B’s true purpose

Conway’s story is a model for how the 340B program can be used to drive transformation. It’s not just about cost savings. It’s about outcomes.

“We’ve expanded into areas of medicine we never thought we could offer. We’ve added a cancer center, a pain clinic, a dermatology clinic, and a women’s center. We’re expanding our footprint and treating more patients than ever before. Without 340B and our Readmission Reduction program, that wouldn’t have been possible.”
— Andrew Wright, Director of Pharmacy, Conway Medical Center

Final thought

340B’s mission is to use limited federal resources to help patients not just survive but thrive. Conway Medical Center offers a compelling blueprint. And they’re not alone. Across the country, covered entities are quietly using 340B to drive meaningful, measurable change.

Further reading

• Use AI to optimize your health system’s 340B program
• The future of 340B: What health system leaders need to know in 2025 and beyond
• How to align 340B with value-based care: A framework for success

Learn more

Want to learn more about how we help create pharmacy value and improve patient outcomes? Contact us by filling out the form below.