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Statement from University of North Carolina Hospital

UNC Health Care is fully compliant with the 340B program.

Based on Federal guidelines and rules of participation, all qualifying entities are permitted to purchase outpatient medications at 340B pricing. HRSA, the Federal agency charged with oversight of the 340B program, states that the purpose of the program is to enable covered entities to stretch scarce federal resources to reach more eligible patients, and provide more comprehensive services. The intent is to help entities provide a wide-array of services to more patients. UNC administers this program in accordance with these guidelines.

In following the federally approved program, we are able to purchase outpatient medications at a reduced cost. We invest those savings in providing free drugs to our thousands of charity care and uninsured inpatients and outpatients and extend limited resources to a broad patient population. This fiscal year through June 2013, we are on track to provide approximately $300M of uncompensated care to North Carolinians.

The growth in the program at UNC Health Care is a result of drug cost inflation, which has been reported nationwide, and our significant outpatient volume growth – 1.3 million in FY12, up from less than 950,000 in FY09.

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