What You Should Know:
– Proximity, the intelligent automation platform maximizing 340B drug discount revenue for qualified healthcare providers, launched today with $3 million in funding to help uncover and secure revenue critical to operating budgets.
– Proximity’s Seed round was led by LRVHealth with participation from Commonweal Ventures and will accelerate development of its technology that has already been proven with pilot customers to improve 340B program values by an average of 20%.
Optimizing 340B Program Management: Proximity’s Technology-Driven Approach
Proximity enhances healthcare providers’ revenue under the federal 340B Drug Pricing Program while minimizing administrative burden. By centralizing data from electronic health records (EHRs), third-party administrators (TPAs), and wholesalers into a single intelligent platform, Proximity ensures compliance, mitigates manufacturer threats, and uncovers overlooked 340B revenue in days rather than weeks.
The federal 340B program allows healthcare providers serving low-income and vulnerable populations to purchase prescription drugs at discounted rates while receiving full reimbursement. In 2023, providers procured a record $66 billion in drugs through the program. For institutions operating on tight margins, the savings from 340B are critical to sustaining patient services.
Managing a 340B program, however, presents significant challenges:
· Ensuring compliance by verifying patient eligibility, preventing duplicate discounts, and adhering to federal and state regulations.
· Overseeing contract pharmacy dispensing while maintaining program integrity and preventing revenue leakage.
· Managing audits and regulatory requirements to avoid penalties and maintain eligibility.
· Navigating increasing program complexity due to evolving pricing restrictions and opaque data structures.
Proximity addresses these challenges by streamlining 340B program administration across pharmacy, finance, and compliance functions. Its platform:
· Centralizes 340B management to simplify claims processing and ensure adherence to regulations.
· Automates revenue recovery by continuously reassessing program data, identifying missed opportunities, and optimizing financial outcomes.
· Enhances interdepartmental collaboration by providing transparent, actionable insights across compliance, pharmacy, and financial teams.
· Reduces administrative complexity by integrating data from wholesalers, TPAs, and EHR systems into a single source of truth.
“Healthcare providers essential to their communities risk severe service cuts—or even closure—without 340B revenue,” said Scott Johnsen, Founder and CEO of Proximity. “Our platform empowers providers with modern technology to manage compliance, recover revenue, and optimize 340B operations, ensuring long-term sustainability.”
Proximity’s impact is evident in organizations like SIHF Healthcare, a network of federally qualified health centers (FQHCs) in Southern Illinois. Within 11 months of implementation, SIHF Healthcare recovered over $2 million—reflecting a nearly 15% increase in 340B revenue.
The platform benefits all covered entities under the 340B program, including:
· Federally Qualified Health Centers (FQHCs)
· Critical Access Hospitals (CAHs)
· Disproportionate Share Hospitals (DSHs)
· Children’s hospitals and other safety-net providers
By leveraging automation and data intelligence, Proximity enables healthcare organizations to depend on 340B as a predictable revenue source, ensuring continued access to care for vulnerable populations.
