86 RXINSIDER | 2026 PHARMACY500 PLATINUM PAGES
DISTRIBUTION
• 340B Solutions, 340B Management Systems
• DSCSA Solutions
• GPOs, Buying Groups, COOPs
• Pharmacy Supplies
• Returns, Reverse Distribution
• Wholesalers & Distributors
OVERVIEW
Pharmacy distribution channels facilitate the secure and
efficient delivery of medications from manufacturers to patients
through wholesalers, who handle procurement, storage, and
distribution while ensuring regulatory compliance and inventory
management. In addition, GPOs, COOPs, and programs like
340B, drug security under DSCSA, as well as reverse distribution,
all aid in the process of the reliable and safe transfer of
medications from manufacturers to patients.
KEY TERMS
• The 340B Drug Pricing Program is vital for safety-net
healthcare providers, allowing them to enhance access
to medications, reduce medication costs for vulnerable
populations, and reinvest savings into community health
initiatives. The 340B Drug Pricing Program is a U.S. federal
program established under Section 340B of the Public Health
Service Act of 1992. It requires pharmaceutical manufacturers
that participate in the Medicaid Drug Rebate Program to
provide outpatient drugs to eligible healthcare organizations,
referred to as covered entities, at significantly reduced prices.
• The Drug Supply Chain Security Act (DSCSA) is a component
of the U.S. Drug Quality and Security Act (DQSA), enacted in
2013, aimed at enhancing the security of the pharmaceutical
supply chain to protect patients from counterfeit, stolen,
contaminated, or otherwise harmful drugs. The DSCSA
enhances patient safety by ensuring that prescription drugs
are authentic, properly handled, and traceable.
• Pharmacy Group Purchasing Organizations (GPOs) are
collaborative entities that aggregate the purchasing power
of its member pharmacies, healthcare systems, or other
healthcare providers to negotiate more favorable pricing,
terms, and services with pharmaceutical manufacturers,
wholesalers, and other suppliers.
• Pharmacy supplies include a range of products, tools, and
equipment necessary for the operation of a pharmacy and the
provision of pharmaceutical care, supporting the dispensing,
preparation, storage, and administration of medications, as
well as ancillary activities related to patient care.
• Pharmacy reverse distribution is a process in the
pharmaceutical supply chain where unsold, expired, damaged,
or recalled medications are returned by pharmacies,
hospitals, or other healthcare providers to specialized third-
party companies for proper handling.
• Pharmacy wholesalers or distributors are companies in
the pharmaceutical supply chain that act as an intermediary
between drug manufacturers (e.g., Merck, Pfizer, Sanofi, etc.)
and pharmacies. Pharmacy wholesalers play a critical role in
ensuring the efficient and secure supply of medications.
98%
of U.S. hospitals use
at least one GPO.
Source: Healthcare Supply Chain Association
$13B
worth of pharmaceuticals flow through
the reverse distribution channel annually.
Source: Healthcare Distribution Alliance