Glossary of Healthcare Terms and Acronyms


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Term Definition
340B Federal drug discount program created in 1992 requiring manufacturers to provide discounts on outpatient prescription drugs to eligible healthcare providers.    
501(c)(3) The section of the tax code that defines nonprofit, charitable, tax-exempt organizations. Generally, to qualify for tax-exempt status under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3) and none of its earnings may inure to any private shareholder or individual.    
501(r) A section of the Internal Revenue Code added by the Affordable Care Act (ACA). It imposes new requirements on 501(c)(3) organizations that operate one or more hospital facilities (hospital organizations) in order to maintain the hospitals’ tax exempt status.