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Operational Errors That Erode 340B Savings

Blog Post

Operational Errors That Erode 340B Savings

By Madelyn Vanwyk

Outside of losing eligibility, the most common ways to reduce 340B savings are operational. Errors in maintaining up-to-date pricing, accumulation, and billing files can silently erode savings or margin that are vital to the primary mission of the 340B program, stretching scarce federal resources. These mistakes often go unnoticed, because they hide in fragmented data across pharmacy, finance, and compliance.

Similar types of operational failures may erode 2% to 5% of the total 340B spend annually. For a covered entity managing $100 million in 340B volume, that can mean $2 million to $5 million per year in lost, yet recoverable, savings.

Annual Spend Eroded

2% to 5%

of total 340B spend can be lost annually due to operational failures.

Potential Lost Savings

$2M to $5M

per year for a covered entity managing $100 million in 340B volume.


Where Health Systems Lose 340B Value

There are a few common issues that contribute to 340B savings loss:

1. Overpaying on Conversions

Improper WAC-to-340B conversions (accumulation generation and usage) can result in overpayments that compound quickly. Even small percentage errors on high-volume drugs can add up significantly.

2. Missed Accumulations from Charge Lag

When charge capture does not align with dispensing activity, accumulations are lost. Lag in claims data is one of the most frequent reasons health systems under-earn 340B value.

3. NDC Mapping Errors

If the NDC on a claim does not match the purchased item, the transaction may be excluded from 340B pricing. These mapping gaps are subtle but can result in savings from a large-volume program.

4. Replenishment Failures

Wholesaler data discrepancies or mismatched files lead to replenishment failures. When replenishment does not occur, health systems are forced to purchase at higher prices.

5. Inaccurate Wholesaler Data

Incomplete or inaccurate wholesaler data feeds make it difficult to validate invoices. Without accurate data, finance teams lack visibility into where spend is leaking.

Why These Errors Persist

The challenge isn’t that health systems are unaware of these risks; it’s that most organizations still depend on fragmented oversight. Different teams often work with different data sets, making it nearly impossible to identify where value is being lost. Manual audits and static reports only capture a fraction of the activity, leaving the bulk of errors hidden in day-to-day operations.

How Bluesight Reduces Leakage

Bluesight’s 340B platform, 340BCheck, addresses the root causes of savings loss. The solution continuously audits every transaction, validating the proper capture of all qualified administrations and surfacing areas for focus to reclaim potential missed opportunities. By aligning data, it catches claim capture errors, missed accumulations, and opportunities that would otherwise go undetected.

CostCheck adds another layer of protection by monitoring the performance of wholesaler contracts. This platform modernizes the drug purchasing experience and instantly identifies pricing discrepancies, enabling finance teams to intervene before losses compound.

Protecting What 340B Was Meant to Deliver

Each of these operational errors drains funding that should support patient access and community health initiatives. Bluesight closes that gap, helping health systems capture the full financial benefit of their 340B program and reinvest those dollars where they matter most.