If you manage a 340B program, acronyms aren’t just jargon—they’re compliance markers, financial levers, and audit triggers. For pharmacy leaders, understanding the terminology behind the 340B ecosystem is critical to achieving sustainable savings and protecting compliance integrity.
This guide from Cooper Strategy organizes key 340B acronyms by function—governance, eligibility, pricing, operations, and compliance—and explains how each affects your day-to-day operations. Whether you’re onboarding new staff or tightening audit readiness, this glossary will help your team speak the same language of 340B compliance.
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Why Acronyms Matter in 340B Compliance
Each acronym in the 340B program represents a piece of the compliance and operational structure. Misunderstanding even one can lead to inefficiency, loss of savings, or audit findings.
- Operational clarity: Acronyms define the data elements your split-billing and TPA systems rely on for qualifying prescriptions.
- Financial impact: Terms like WAC, URA, and Ceiling Price dictate your acquisition costs and rebate dynamics.
- Compliance confidence: Acronyms such as MEF, GPO, and Duplicate Discount mark where HRSA focuses its audits.
- Audit readiness: HRSA expects alignment across OPAIS, CE, Child Site, and Medicaid carve-in/out settings.
Governance and Oversight Acronyms
HRSA — Health Resources & Services Administration
The federal agency that oversees the 340B Program. HRSA defines eligibility, monitors compliance, and conducts audits. Every policy, contract, and process you implement should align with HRSA guidance.
OPA — Office of Pharmacy Affairs
A division within HRSA responsible for administering the 340B program. OPA issues updates, clarifications, and audit procedures.
OPAIS — Office of Pharmacy Affairs Information System
The online registration system for covered entities, child sites, and contract pharmacies. HRSA auditors compare OPAIS listings against your operational footprint, so accuracy is non-negotiable.
CE — Covered Entity
An organization (hospital, FQHC, or clinic) eligible to purchase discounted outpatient drugs under 340B. The CE bears full responsibility for compliance—even when using vendors.
Child Site
An outpatient facility registered under a covered entity’s OPAIS listing. Only registered child sites are eligible for 340B participation.
PVP — Prime Vendor Program
A voluntary program that negotiates sub-ceiling prices and value-added services for covered entities. Leveraging PVP pricing can improve cost savings while maintaining compliance.
GPO — Group Purchasing Organization
An entity that negotiates bulk purchasing prices. For some hospital types, HRSA prohibits GPO purchasing for outpatient drugs—known as the GPO Prohibition—to prevent pricing overlap.
Eligibility and Patient Definition Acronyms
Patient Definition (340B “New Patient” Eligibility)
Determines whether a prescription qualifies for 340B pricing. The patient must have a documented relationship with the covered entity, receive care from an eligible provider, and have health records maintained by the CE.
Referral Capture (RC)
The process of identifying and qualifying eligible prescriptions generated from referred or external providers. Accurate RC programs rely on data-sharing, encounter documentation, and prescriber attribution.
NPI — National Provider Identifier
A unique ID for each healthcare provider. NPI mapping ensures prescriber eligibility and accurate claim attribution.
New Patient Procurement (NPP)
The operational effort to ensure new providers, clinics, and services meet 340B eligibility from launch. NPP aligns HRSA’s patient definition with organizational growth strategies.
Medicaid and Duplicate Discount Acronyms
Duplicate Discount
Occurs when a manufacturer provides both a Medicaid rebate and a 340B discount for the same drug. HRSA requires strict prevention measures to avoid this.
MEF — Medicaid Exclusion File
Lists covered entities that “carve in” or “carve out” Medicaid claims. The MEF setting must align with actual billing practices—discrepancies can trigger HRSA findings.
Carve-In / Carve-Out
- Carve-In: The CE dispenses 340B drugs for Medicaid patients and identifies those claims for rebate exclusion.
- Carve-Out: The CE bills Medicaid only for non-340B drugs.
MCO — Managed Care Organization
Medicaid managed care plans. Each state’s MCO rules differ, adding complexity to duplicate discount prevention.
Pricing and Purchasing Acronyms
Ceiling Price
The maximum a manufacturer can charge a covered entity for a 340B drug. Always ensure invoice prices are at or below this value.
AMP — Average Manufacturer Price
A benchmark for calculating the Unit Rebate Amount (URA), which helps determine the 340B ceiling price.
URA — Unit Rebate Amount
The rebate manufacturers owe Medicaid. It’s a core component in setting 340B drug pricing.
WAC — Wholesale Acquisition Cost
The list price set by the manufacturer before any discounts. Monitoring WAC trends helps identify pricing anomalies or eligibility gaps.
Orphan Drug Exclusion
Certain hospital types cannot use 340B discounts on orphan-designated drugs when prescribed for the orphan indication.
Operational and Technology Acronyms
TPA — Third-Party Administrator
A vendor that manages split-billing, eligibility, and replenishment systems. Covered entities must understand the logic and rules the TPA applies to maintain compliance.
Split-Billing
The process of allocating purchases among 340B, GPO, and WAC accounts based on eligibility logic.
Contract Pharmacy (CP)
An external pharmacy that dispenses drugs on behalf of a covered entity. Each contract pharmacy relationship must be documented and registered in OPAIS.
Accumulator / Replenishment
The tracking mechanism used to match dispenses with corresponding purchases. Audit-ready programs maintain detailed accumulator logs.
NDC — National Drug Code
Identifies the drug, manufacturer, and package size. Matching NDCs across purchase and dispense data is critical to compliance accuracy.
Compliance and Audit Acronyms
Diversion
Dispensing a 340B drug to an ineligible patient or location. Often stems from documentation or prescriber attribution gaps.
Recertification
The annual HRSA requirement to validate all 340B registrations and authorizing officials.
ADR — Administrative Dispute Resolution
A formal process for resolving disputes between manufacturers and covered entities.
Self-Audit / Mock HRSA Audit
An internal review of eligibility, duplicate discount prevention, and contract pharmacy processes. Best practice: conduct semi-annual self-audits.
Corporate Expense Reduction Acronym
CER — Corporate Expense Reduction
A Cooper Strategy framework aligning compliance controls, vendor strategy, and financial optimization to reduce enterprise drug spend while maintaining audit integrity.
CER connects acronyms like PVP, GPO, and TPA into a unified strategy for measurable cost reduction and savings sustainability.
Quick-Reference Glossary (A–Z)
| Acronym | Definition |
| AMP | Average Manufacturer Price |
| CE | Covered Entity |
| CER | Corporate Expense Reduction |
| CP | Contract Pharmacy |
| DSH | Disproportionate Share Hospital |
| GPO | Group Purchasing Organization |
| HRSA | Health Resources & Services Administration |
| MEF | Medicaid Exclusion File |
| MCO | Managed Care Organization |
| NDC | National Drug Code |
| NPI | National Provider Identifier |
| OPAIS | Office of Pharmacy Affairs Information System |
| PVP | Prime Vendor Program |
| RC | Referral Capture |
| TPA | Third-Party Administrator |
| URA | Unit Rebate Amount |
| WAC | Wholesale Acquisition Cost |
How Cooper Strategy Helps 340B Leaders Decode and Deliver
Acronyms define your program—but strategy defines your success.
Cooper Strategy helps 340B leaders operationalize compliance and financial optimization frameworks built on clarity and control. Our team integrates policy, analytics, and audit readiness to ensure your program performs with both compliance confidence and measurable savings.
Turn 340B language into lasting results: Contact Cooper Strategy
Frequently Asked Questions About Navigating the Maze: Key 340B Acronyms Every Pharmacy Leader Should Know
1. Why is it important for pharmacy leaders to understand 340B acronyms in detail?
Understanding 340B acronyms isn’t just about terminology—it’s about compliance, operations, and financial control. Each acronym connects to a component of eligibility, pricing, or documentation that determines audit outcomes. Misinterpreting terms like OPAIS, MEF, or GPO Prohibition can lead to diversion findings or lost savings. Acronym fluency improves internal communication, strengthens SOP alignment, and ensures your systems, vendors, and policies speak the same language. When leadership understands the “alphabet” of compliance, they can translate it into stronger controls and more sustainable 340B results.
2. How do 340B acronyms connect to compliance and audit readiness?
Every HRSA audit begins with acronym alignment. OPAIS validates your CE and Child Site data; MEF confirms your carve-in/out settings; TPAs apply the logic that defines patient eligibility. When those acronyms—and their underlying processes—don’t match, HRSA finds findings. Mastering them allows teams to detect errors early, monitor compliance continuously, and simplify audit responses. Each acronym effectively represents a compliance checkpoint, and together they form your audit blueprint. Understanding them deeply transforms acronyms from confusion into operational control and audit confidence.
3. How can understanding 340B pricing acronyms improve financial performance?
Terms like WAC, AMP, URA, and Ceiling Price define your drug acquisition costs. Pharmacy leaders who understand how these values interact can spot pricing discrepancies and ensure optimal use of PVP and sub-ceiling opportunities. Knowing when to leverage WAC versus 340B or GPO pricing helps prevent overpayment and boosts savings integrity. Acronym literacy also strengthens collaboration between pharmacy and finance teams—transforming compliance data into actionable financial insights. In short, understanding pricing acronyms is one of the most effective ways to turn regulatory knowledge into measurable cost reductions.
4. What role do 340B acronyms play in managing contract pharmacy networks?
Contract pharmacies add both scale and complexity. Acronyms like TPA, CP, NPI, and NDC define the data logic that governs those networks. When pharmacy teams understand how each connects—NPI mapping to prescriber eligibility, NDC alignment to purchases, TPA logic to replenishment—they gain control over compliance risk. These acronyms represent the building blocks of your contract pharmacy governance framework. Without them, even well-intentioned programs can experience data mismatches, diversion, or audit exposure. With them, leaders can manage networks proactively and confidently.
5. How can Cooper Strategy help pharmacy teams apply 340B acronyms in real operations?
Cooper Strategy bridges the gap between acronym awareness and operational excellence. We help covered entities embed definitions like MEF, OPAIS, TPA, and CE directly into workflows, reports, and audit protocols. Our consultants translate 340B terms into measurable policies, data dashboards, and compliance controls that withstand HRSA scrutiny. Whether you’re improving referral capture logic, expanding contract pharmacy oversight, or optimizing expense reduction, we ensure acronym mastery drives meaningful results.
Start your strategy conversation today: Contact Cooper Strategy