340B industry association 340B Health conducted the survey to assess how 340B-participating hospitals used the savings generated through the program to support critically underserved populations.
The 340B Drug Pricing Program is a federal program that requires drug manufacturers to provide outpatient drugs to 340B eligible organizations, also called covered entities, at a discounted rate. The intent of the program is to help these covered entities, serving the nation’s most vulnerable patients, “stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”
The survey revealed these key findings:
- Unanimously, hospitals participating in the survey reported that cuts to the 340B program would lead to significant challenges in their ability to provide care to their low-income and rural populations. Additionally, cuts to the program would force these hospitals to scale back programs and services that improve health outcomes and reduce hospital admissions and mortality rates. Over half stated that losses in the program could mean having to close their doors.
- 340B savings varied, due in large part to hospital size. As expected, larger hospitals reported more savings than smaller hospitals. The average annual 340B savings across all of the hospitals surveyed was $11.8 million.
- On average, hospitals spend $100,000 - $200,000 annually to maintain 340B program compliance and employ, on average, two full-time employees to manage their 340B programs — no small expense, especially for the smaller and rural hospitals fighting to keep their doors open.
- Hospitals are using the 340B savings to support uncompensated care (95%), patient care services (90%), and to offset low reimbursement (72%). 93% of rural hospitals use the savings to keep their facilities open.
- 340B savings are making a difference to help improve patients’ lives. Nearly 90% of hospitals reported that programs and services started with their 340B savings are improving medication adherence, reducing readmissions, and improving clinical outcomes.
340B Health’s 2018 Annual Survey Report can be found here. For more information on 340B Health, visit 340Bhealth.org.
Erika Pfeifer, Marketing and Client Success Representative
Erika Pfeifer is the liaison between Marketing and Client Success at Equiscript. She works with both teams to collaborate and come up with ways to better reach and serve our patients, clients, and communities. Erika is a graduate of the University of Arkansas where she studied communication and marketing.