A not-for-profit hospital that elects to participate in the drug discount program established under Section 340B of the federal Public Health Service Act (42 U.S.C. Sec. 256b) may enter into an agreement with the State Department of Health Services for that purpose, which shall be subject to this part.
Part 5.7HEALTH CARE FOR LOW-INCOME PERSONS NOT COVERED BY THE MEDICARE PROGRAM OR THE MEDI-CAL PROGRAM
Section § 17800
This law section states that not-for-profit hospitals in California can choose to participate in a federal drug discount program known as the 340B program. To do so, they must make an agreement with the State Department of Health Services. Any such agreement will be governed by additional rules outlined in the relevant part of the law.
non-profit hospitals drug discount program 340B program federal Public Health Service Act State Department of Health Services hospital agreements discount pharmaceutical program public health services not-for-profit hospital eligibility 340B participation requirements
Section § 17801
This section requires the State Department of Health Services to create a standardized contract for agreements with not-for-profit hospitals. These contracts must include certain terms. Firstly, hospitals must maintain their existing commitment to providing charity care, as they've reported, when they initially contract with the department. Secondly, the contracts remain in effect until either side decides to terminate them, with a mandatory notice period of at least 60 days.
The State Department of Health Services shall develop a standard contract for use in an agreement entered into pursuant to Section 17800, which shall include, but not be limited to, the following terms:
(a)CA Welfare and Institutions Code § 17801(a) Initially upon contracting with the State Department of Health Services pursuant to Section 17800, the not-for-profit hospital shall agree to continue its historic commitment to the provision of charity care, as reported to the Office of Statewide Health Planning and Development.
(b)CA Welfare and Institutions Code § 17801(b) The term of the contract shall continue until terminated by either party upon not less than 60 days’ prior written notice to the other party.
State Department of Health Services standard contract not-for-profit hospital charity care Office of Statewide Health Planning and Development contract termination 60 days notice historic commitment healthcare agreements contract terms
