A 340B program can have a significant financial impact on a healthcare organization, yet leadership may not always have a clear view of the revenue, costs, fees, cash flow, and financial performance associated with the program.
GoldWiseman CPAs provides financial oversight and analysis to help healthcare organizations and FQHCs better understand the financial activity generated by their 340B programs.
340B activity can involve multiple financial components, including pharmacy revenue, drug acquisition costs, dispensing activity, contract pharmacy arrangements, administrative fees, and other program-related expenses.
Looking only at gross revenue can give leadership an incomplete picture.
GoldWiseman helps organizations organize and analyze the financial information behind their 340B programs so management can better understand:
The objective is to give leadership a clearer financial picture of the program rather than treating 340B activity as an isolated revenue number.
Significant 340B revenue does not automatically translate into an equivalent financial benefit.
Organizations need to consider the costs and fees associated with generating that revenue.
GoldWiseman can help analyze 340B financial activity by bringing revenue and related expenses together into a more useful management view.
This can help leadership understand whether changes in gross revenue are translating into changes in the program's financial contribution.
Contract pharmacy arrangements can introduce additional layers of financial activity.
Depending on the arrangement, organizations may encounter dispensing fees, administrative charges, revenue-sharing structures, reconciliation activity, and timing differences between transactions and cash receipts.
GoldWiseman helps organizations examine the economics of contract pharmacy relationships using available financial and operational data.
Analysis can help management compare activity across arrangements and better understand where revenue is being generated and where related costs are being incurred.
Leadership should be able to connect 340B reports with the organization's accounting records.
When pharmacy reports, vendor information, cash receipts, and general ledger accounts do not reconcile clearly, understanding the true financial impact of the program becomes difficult.
GoldWiseman can help organizations evaluate how 340B financial activity is recorded within the accounting system and develop processes for reconciling relevant balances and transactions.
Better integration between operational reports and accounting records can improve the reliability of management reporting.
Executive teams and boards generally do not need transaction-level pharmacy reports.
They need financial information that explains the program's overall significance to the organization.
Useful management reporting may include:
GoldWiseman helps translate detailed financial activity into reporting that leadership can use for oversight and decision-making.
Revenue recognition and cash receipts do not always occur at the same time.
This can make it difficult to determine whether changes in reported 340B activity are actually producing the expected cash flow.
Regular reconciliations can help identify differences among operational reports, accounting records, receivables, vendor statements, and cash activity.
GoldWiseman can help establish financial reconciliation processes that give management greater confidence in reported 340B results.
Programs involving substantial transaction volume and multiple outside parties benefit from clearly defined financial controls.
Depending on the organization's structure, financial controls may address:
These controls complement the organization's broader operational and regulatory oversight by focusing specifically on the integrity of financial information.
For Federally Qualified Health Centers, 340B can exist alongside Medicaid and Medicare reimbursement, federal grants, patient-service revenue, and other funding sources.
That makes it important to understand 340B within the health center's broader financial picture.
GoldWiseman helps FQHC leadership evaluate 340B financial activity alongside operating results, reimbursement, cash flow, expenses, and other sources of revenue.
340B should not become a financial reporting silo.
Its effect may ultimately appear throughout the organization's income statement, balance sheet, cash flow, budgeting, and forecasting processes.
GoldWiseman combines 340B financial analysis with broader healthcare accounting and advisory services so leadership can evaluate the program in the context of the organization's overall financial performance.
When 340B represents a meaningful source of financial support, changes in program performance can affect the organization's broader operating plan.
Historical activity can help management develop assumptions for budgeting and forecasting while also identifying areas where actual results differ from expectations.
GoldWiseman helps organizations incorporate relevant 340B financial information into broader financial planning rather than treating the program separately from the operating budget.
The most useful financial question is not simply how much 340B revenue the organization generated.
Leadership also needs to understand the costs associated with that activity, the cash ultimately received, how results are changing, and how the program contributes to the organization's overall financial position.
GoldWiseman helps healthcare organizations develop the accounting, reconciliation, analysis, and reporting needed to create that financial visibility.