Report: 340B Program Helps Hospitals Serve the Poor, More Important Than Ever, Study Finds
FOR IMMEDIATE RELEASE
May 16, 2016
Contact: Randy Barrett
(202) 536-2285
randy.barrett@340bhealth.org
Washington, D.C.— The 340B drug discount program helps safety-net hospitals provide free and discounted drugs, clinical services and other vital benefits to vulnerable patients, a new report shows. The program is also essential post Affordable Care Act as hospitals are seeing significantly more underinsured patients.
The new report provides results from a survey of members of the trade association 340B Health and includes responses from disproportionate share (DSH) hospitals, critical access hospitals, children’s hospitals, sole community hospitals and rural referral centers.
Respondents report that they use 340B drug discount program savings to expand patient access to medicines and improve pharmacy services in numerous ways*:
- 77 percent say 340B enhances their ability to serve the uninsured or underinsured
- 71 percent say it increases their ability to provide free/discounted drugs to low-income patients
- 65 percent say it funds patient counseling
- 62 percent say it funds hospital readmission-reduction programs
- 60 percent say it funds medication therapy management
The pharmaceutical industry is lobbying Congress and the Obama administration to curtail the program by limiting hospital and patient eligibility. The survey makes clear that such a policy would have devastating repercussions in communities across America. Respondents report that without 340B savings*:
- 78 percent say drug costs would increase for the underinsured and uninsured
- 71 percent predict reductions to pharmacy services
- 40 percent predict closure of one or more clinics
- 28 percent foresee reduced on-site dispensing services
Despite overall reductions in the number of uninsured through the ACA, 93 percent of hospitals say that the 340B program is more important now than it was five years ago. Why? They are seeing far more underinsured patients who cannot afford high co-pays and deductibles. Seventy-eight percent of respondents reported an increase in the number of underinsured. Hospitals also report seeing high numbers of uninsured patients even as the national figure has dropped to about 30 million.
“It is crystal clear from the survey that hospitals use 340B savings to treat the poor and the most vulnerable,” said Ted Slafsky, President and Chief Executive Officer of 340B Health. “It is also evident that if the drug industry is successful in restricting the program, providers would be forced to reduce vital services and some hospitals would have to close their doors altogether.”
*Percentages total more than 100 percent because of multiple responses to individual questions.
#####
340B Health is an association of more than 1,200 hospitals. We are the leading advocate and resource for those providers who serve their communities through participation in the 340B drug pricing program. For more information about us and the 340B program, visit www.340bhealth.com.
Click here for a pdf of this release.