STATEMENT BY 340B HEALTH PRESIDENT AND CEO MAUREEN TESTONI REGARDING PROPOSED MEDICARE CUTS TO 340B HOSPITALS IN 2020
WASHINGTON, D.C., JULY 29, 2019 — The following statement on the proposed 2020 Medicare outpatient prospective payment system rule can be attributed to 340B Health President and CEO Maureen Testoni:
“Today’s proposed rule seeks to perpetuate an unlawful payment policy that is harming patients and the safety-net hospitals that they rely on. By stating it will continue a nearly 30 percent cut in Medicare payments to many 340B hospitals, the Department of Health and Human Services is ignoring the findings of a federal court that the policy exceeds the government’s regulatory authority.”
“340B hospitals provide 60 percent of all uncompensated and unreimbursed care in the U.S. and are responsible for two-thirds of all inpatient hospital days for patients in Medicaid. In rural parts of the country, 340B savings often are the difference between a hospital staying open or closing its doors.”
“The cuts, which have been in effect since January 2018, have forced many hospitals to cut back on services and staff at a time when our nation faces significant health threats, including the ongoing opioid epidemic. On behalf of these patients, we call on the administration to end this policy and restore payments to the appropriate statutory levels in the final payment rule. HHS also must follow the direction of the court by reimbursing 340B hospitals for the pay cuts Medicare has imposed since 2018.”
###
340B Health is an association of nearly 1,400 hospitals. We are the leading advocate and resource for hospitals that serve their communities through participation in the 340B drug pricing program. Learn more at www.340bhealth.org.