Health department tries to maximize drug revenue

The Wayne County Health Department plans to begin dispensing drugs through the federal 340B program.

By doing that instead of contracting with a pharmacy, the department can increase its share of revenue from the program that requires eligible health organizations receive significant discounts on outpatient drugs from pharmaceutical manufacturers.

Dan Burk, the health department director, told the county’s Board of Health during its May 12 meeting that the department currently pays out 31% of the money it receives through the program, but if self-dispensing, it would pay only 10%. The change is not expected to affect prices paid by patients.

In January 2025, the board approved Nelco Advisory as the health department’s 340B consultant. Josh Free, the founder and president of Nelco, tailored a self-dispensing program to the department, Burk said. That includes a six-month trial period with no fees and the ability to pull out for any reason, because Burk wanted a trial run before any long-term commitment. Nelco would provide necessary software and training.

“As long as we stay on track with what we’re doing now, we’ll come out ahead,” Burk said.

After six months, the department would pay 12% and take over its own licensing and credentialing that Nelco will initially handle.

The board voted 7-0 for Burk to proceed toward self-dispensing.

Other issues

• Burk said the health department would like to replace its current RV-style mobile unit with a truck and trailer. Revenue from sale of the current unit would offset the cost. The truck would replace a vehicle currently in the department’s fleet. The board unanimously approved Burk proceeding to the county’s fleet committee with his plan.
• The health department is providing de-escalation and stress management training 9 a.m. to noon June 1 at the Wayne County Fairgrounds, 861 Salisbury Road N. The Pohl Group will provide the training to create safer outcomes. Burk said law enforcement, fire and medical personnel have been invited to the program. Contact lreimsnyder@waynecounty.in.gov for information.