TORRANCE, Calif., Jan. 10, 2011 /PRNewswire/ -- Hundreds of hospitals, federally qualified health centers (FQHC) and other qualified providers ("covered entities") in California and across the US could soon be saving millions on their drug costs through an integrated solution developed by Keenan that ensures the optimal success for implementing or enhancing the 340B federal drug discount program.

Originally passed in 1992 as part of the Veterans Health Care Act, the 340B program provides deep discounts on outpatient medications to covered entities.  Earlier this year, the Affordable Care Act (part of the federal Health Care Reform legislation) expanded the program, allowing more facilities throughout the nation to participate in the 340B program.

Currently, most hospitals, through group purchasing organizations, are able to purchase drugs at about a 15 to 20 percent discount.  The expansion of 340B will raise that discount to an average of 51 percent.  Depending on the size of the hospital or center, this could mean significant annual savings.  "Recently, Keenan's KIS program identified for a 200-bed hospital system over $2 million in annual gross purchasing cost savings," said Jeffrey Hall, Senior Vice President, Keenan.

"The financial status of many hospitals is so precarious right now that this expansion could not have come at a better time and no one will be able to optimize its benefits better than Keenan and its partners," said Henry Loubet, Chief Strategy Officer, Keenan.

Broadening of the program means that such facilities as specialty hospitals (free standing cancer hospitals, for example), rural hospitals, and a range of smaller facilities (health centers for the homeless, for example) are now eligible to participate.  Since Health Care reform was enacted, President Obama has recently expanded coverage for Orphan Drugs (expensive drugs to treat rare diseases) to children's hospitals.  This 340B program enhancement will provide additional millions of dollars in cost savings to children's hospitals across the US.

"While a wonderful program, 340B can be quite complicated to create, implement or expand, manage, and ensure regulatory compliance," said Jeffrey Hall.  "This is why Keenan Integrated 340B Solution has brought together a team of top industry professionals to help health care facilities in obtaining significant and sustainable cost savings."

Keenan's 340B partners – Ponaman Healthcare Consulting and Ventegra Rx – have high praise for both the program and Keenan.  Scott Ponaman, President of Ponaman Healthcare, said the partnership will allow hospitals and other qualified facilities to "succeed during this national economic crisis," while Robert Taketomo, CEO of Ventegra, said Keenan's integrity and commitment to "transparency and compliance and innovation" will make the team the California leader in 340B implementation.

"Keenan's experienced integrated team has helped enhance and develop 340B for over 12 years," said Hall.  "The team will work with hospitals and other covered entities to assess their opportunities, to assist with program eligibility, regulatory approval and compliance, program development, implementation and beyond, ensuring proper procedures are created and followed to the benefit of all involved."

For more information on the program, please contact Jeffrey Hall at 310-212-3344.

About Keenan

Founded in 1972, Keenan is globally ranked as the 18th largest insurance consulting and brokerage firm and the largest independent broker in California.  Keenan is dedicated to providing superior insurance products and services to healthcare organizations, schools, community colleges, and municipalities for employee benefits, third-party claims administration, workers' compensation, integrated disability, risk management, and property and liability.  With headquarters in Torrance, CA, Keenan has a staff of more than 650 insurance specialists and branch offices in Riverside, San Clemente, Westlake Village, Oakland, San Jose, Rancho Cordova, Redwood City, Pleasanton and Eureka.  For more information, call 800-654-8102 or 310-212-3344, email info@keenan.com, or visit www.keenan.com.

SOURCE Keenan

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