340B Health


in 340B Health News Releases

WASHINGTON, D.C.— The drug manufacturer Novartis today announced that it will cut off discounts for hospitals under the 340B drug pricing program on drugs dispensed at community-based pharmacies that are more than 40 miles from the hospitals’ parent facilities. The following statement is attributed to 340B Health President and CEO Maureen Testoni:

“Today’s action by Novartis, the third largest pharmaceutical company in the world, to terminate 340B discounts to safety-net hospitals in the middle of the third wave of the COVID-19 pandemic is inexcusable. Hospitals across the nation are the front lines of our national response to the public health emergency, and this action will sap resources from them at the worst possible time.”

“To date, four large, multi-billion-dollar drug companies have taken unilateral, unlawful action to undermine the 340B statute and deprive safety-net providers of critically needed resources. 340B hospitals provide 75% of inpatient hospital care for people on Medicaid and 60% of all uncompensated and unreimbursed care. Program savings are critical to the survival of many rural hospitals.”

“The 340B statute is crystal clear. Pharmaceutical companies that participate in Medicaid and Medicare Part B must sell certain outpatient drugs to eligible hospitals at no more than the ceiling price. They are not permitted to put limits on those discounts based on where hospitals are distributing the drugs to their patients. Manufacturers that knowingly and intentionally overcharge for their drugs are subject to civil monetary penalties. It is long past time for the Department of Health & Human Services to put a stop to this unlawful behavior and protect safety-net hospitals and the patients they serve.”

Contact: Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.