This week, our In Focus section comes to us from HMA’s Donna Strugar-Fritsch, Anne Winter, and Julia Elitzer, and addresses recent regulatory changes in the federal 340B drug discount program. Section 340B of the Public Health Service Act authorized the program in 1992. The program is designed to offer deep pharmaceutical pricing discounts to safety net providers to stretch federal funding. Providers eligible to purchase drugs under the 340B program are called “covered entities”. Covered entities may either dispense prescription medications in house or contract with community pharmacies to dispense drugs on their behalf. Since 1992, the program has grown significantly, which has triggered recent regulatory action, as described below.