This paper evaluates how a rebate-based 340B model could affect cash flow for covered entities and contract pharmacies. Using modeled payment timelines, it compares traditional upfront discount mechanisms with retrospective rebate structures. The analysis finds that delayed manufacturer payments could introduce liquidity pressures, particularly for smaller or safety-net providers with limited access to capital. It also explores administrative complexity, reconciliation risks, and interest costs associated with rebate timing. The paper concludes that while rebate models may improve transparency and duplicate discount prevention, careful design is essential to avoid unintended financial strain on providers serving vulnerable populations.

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