Keep pulling the thread on 340B Drug Pricing Program.
The Health Resources and Services Administration (HRSA) announced a 340B rebate model pilot program where participating hospitals will purchase certain drugs at the wholesaler acquisition cost and then request a rebate from the manufacturer, rather than receiving the discount upfront.
The HRSA 340B rebate model pilot program is expected to begin on January 1st of the upcoming year.
The American Hospital Association (AHA) has characterized the new HRSA 340B rebate model as forcing hospitals to provide interest-free loans to drug manufacturers.
The American Hospital Association (AHA) estimates that implementing the 340B rebate model will create significant operational expenses for participating hospitals.
The American Hospital Association (AHA) requested that HRSA either abandon or delay the implementation of the 340B rebate model pilot program.
Monument Health provided over $123 million in uncompensated care and community benefits in the last year.
Monument Health generated approximately $84 million in savings from the 340B program last year.
The American Hospital Association expects Congress to hold additional hearings and potentially introduce new legislation aimed at reforming the 340B program.
The American Hospital Association (AHA) asserts that the growth of the 340B program is primarily due to legislative expansions by Congress that increased hospital eligibility.
The American Hospital Association (AHA) argues that the increasing amount of savings generated by the 340B program is a direct result of rising drug prices set by pharmaceutical companies.
The South Dakota legislature recently passed legislation that protects the ability of hospitals to contract with local retail pharmacies under the 340B program.
Paulette Davidson, CEO of Monument Health, believes that the system's four critical access hospitals would struggle financially and potentially close without the savings from the 340B program.