124 STAT. 823 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘(III) to reduce in other ways the administra- tive burdens of managing both inventories of drugs subject to this section and inventories of drugs that are not subject to this section, so long as the exceptions do not create a duplicate discount problem in violation of subparagraph (A) or a diversion problem in violation of subparagraph (B). ‘‘(iv) PURCHASING ARRANGEMENTS FOR INPATIENT DRUGS.—The Secretary shall ensure that a hospital described in subparagraph (L), (M), (N), or (O) of sub- section (a)(4) that is enrolled to participate in the drug discount program under this section shall have mul- tiple options for purchasing covered drugs for inpatients, including by utilizing a group purchasing organization or other group purchasing arrangement, establishing and utilizing its own group purchasing program, purchasing directly from a manufacturer, and any other purchasing arrangements that the Secretary determines is appropriate to ensure access to drug discount pricing under this section for inpatient drugs taking into account the particular needs of small and rural hospitals.’’. (d) MEDICAID CREDITS ON INPATIENT DRUGS.—Section 340B of the Public Health Service Act (42 U.S.C. 256b) is amended by striking subsection (c) and inserting the following: ‘‘(c) MEDICAID CREDIT.—Not later than 90 days after the date of filing of the hospital’s most recently filed Medicare cost report, the hospital shall issue a credit as determined by the Secretary to the State Medicaid program for inpatient covered drugs provided to Medicaid recipients.’’. (e) EFFECTIVE DATES.— (1) IN GENERAL.—The amendments made by this section and section 7102 shall take effect on January 1, 2010, and shall apply to drugs purchased on or after January 1, 2010. (2) EFFECTIVENESS.—The amendments made by this section and section 7102 shall be effective and shall be taken into account in determining whether a manufacturer is deemed to meet the requirements of section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)), notwithstanding any other provision of law. SEC. 7102. IMPROVEMENTS TO 340B PROGRAM INTEGRITY. (a) INTEGRITY IMPROVEMENTS.—Subsection (d) of section 340B of the Public Health Service Act (42 U.S.C. 256b) is amended to read as follows: ‘‘(d) IMPROVEMENTS IN PROGRAM INTEGRITY.— ‘‘(1) MANUFACTURER COMPLIANCE.— ‘‘(A) IN GENERAL.—From amounts appropriated under paragraph (4), the Secretary shall provide for improve- ments in compliance by manufacturers with the require- ments of this section in order to prevent overcharges and other violations of the discounted pricing requirements specified in this section. ‘‘(B) IMPROVEMENTS.—The improvements described in subparagraph (A) shall include the following: 42 USC 256b. Deadline. Determination.
