STATEMENT REGARDING INTRODUCTION OF THE “STRETCHING ENTITY RESOURCES FOR VULNERABLE COMMUNITIES ACT’’ OR THE ‘‘SERV COMMUNITIES ACT”
Washington, D.C.—The following statement was issued by Maureen Testoni, Interim President and Chief Executive Officer of 340B Health, which represents more than 1,300 nonprofit hospitals and health systems participating in the 340B drug pricing program:
“On behalf of the more than 1,300 safety-net hospitals and systems it represents, 340B Health thanks Congresswoman Matsui for her leadership in introducing the Stretching Entity Resources for Vulnerable Communities Act.
This legislation is essential to the success of the 340B program in helping safety-net providers meet the health needs of low-income and rural patients across the country. By holding pharmaceutical manufacturers accountable for their actions and providing pricing transparency to the thousands of safety-net providers that participate in the program, the SERV Communities Act will reduce costs and expand access to needed care.
Pharmaceutical manufacturers have deflected concerns regarding pricing transparency for too long. As a result, purchasers have had to simply accept what was offered and trust that they were being treated fairly. Clear, documented evidence has shown a pattern of overcharging for 340B covered drugs, yet rules to curb those practices have been delayed time and time again. The Congresswoman’s legislation says ‘enough is enough’ and requires the administration to move forward with assessing civil monetary penalties against manufacturers that overcharge providers and to share 340B prices with providers so they can see when they are being overcharged.
We are pleased that the bill would reverse the misguided cut in Medicare Part B payments to 340B hospitals that are weakening providers’ ability to continue to fulfill their mission. The legislation also makes a number of improvements to the 340B program that will provide greater transparency for manufacturers and safety-net providers. The 340B program is critical for safety-net hospitals. Review of extensive data reported every year by hospitals reveals that 340B hospitals provide 60 percent of all uncompensated care in the U.S. despite being only 38 percent of acute care hospitals. Data reported by hospitals also shows that an average of 42 percent of patients served by 340B hospitals qualify for either Medicaid or Medicare. We are delighted to offer our full support.”
Contact: Richard Sorian at 202-536-2285 or email@example.com.