Hospitals React to House Panel’s Request for 340B Oversight Info

by Admin | June 2, 2017 1:54 pm

June 2, 2017—An association of more than 1,300 hospitals and health systems said late yesterday it welcomed “balanced congressional oversight” of the 340B drug discount program[1] in response to news that the chairman of the House Energy & Commerce Committee and two subcommittee chairmen sent a letter[2] to the Health Resources and Services Administration requesting documents related to HRSA’s oversight of 340B and expressing concerns about how providers use their savings.

In a statement, the group 340B Health expressed support for 340B program integrity and oversight, adding that it welcomed “balanced congressional oversight of all stakeholders – healthcare providers and drug manufacturers.”

“Hospitals are among the most transparent of all organizations,” 340B Health said, and “existing federal reporting requirements show the value that 340B hospitals bring to low-income and rural patients.”

“340B hospitals continue to treat more low-income cancer patients[3] than non-340B providers,” the group pointed out. They serve more low-income patients[4] and provide more uncompensated care[5] than non-340B hospitals.  They provide more vital but money-losing services[6] that are critical to low-income patients like labor and delivery, trauma care, and HIV/AIDS services. 340B hospitals also serve more Medicare Part B patients[7] who are disabled, dually eligible for Medicare and Medicaid, or are a racial or ethnic minority.”

The group also observed that:

• Total 340B sales are about 2.8 percent of total U.S. prescription drug spending
• Hospitals and other healthcare providers in 340B pay drug companies about $6 billion less for covered outpatient drugs than they otherwise would pay
• 340B disproportionate share hospitals are responsible for 60 percent of the uncompensated care in this country even though they make up only 36 percent of all hospitals
• 340B DSH hospitals spend close to $24 billion on uncompensated care and billions more in specialized services in low-income communities
• There has been extensive additional oversight of 340B hospitals and other providers in recent years
• A duplicate discount does not mean that a provider receives two discounts on the same drug, but rather that a drug company provides a 340B discount on a drug to a provider and pays a rebate on the same drug to Medicaid
• A duplicate discount finding in a HRSA audit does not mean that a duplicate discount actually occurred, but instead could simply indicate there was an inconsistency in how a provider’s information was listed in HRSA’s 340B database

340B Health also cited a study[8] that demonstrates the many ways hospitals use their 340B savings in their indigent care mission. “The 340B program funds free and reduced-price medications for the needy and much more,” said 340B Health President and Chief Executive Officer Ted Slafsky. “From neighborhood clinics to medication management services and even patient transportation to hospitals, 340B savings improve the health of underserved Americans every day.”

You can read 340B Health’s complete statement here[9].

Source URL: https://340binformed.org/2017/06/hospitals-react-to-house-panels-request-for-340b-oversight-info/

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