Restoring 340B Hospitals’ Part B Drug Payments Would Cut Net Outpatient Payments for 80% of Hospitals, Private Cancer Doctor-Funded Study Finds

Outpatient exterior sign on hospital
80% of hospitals in Medicare’s outpatient prospective payment system would see their net payments decline next year if CMS ends a nearly 30% cut in 340B hospitals’ drug payments, according to a private oncologist group funded study.

Eighty percent of all hospitals in Medicare’s outpatient prospective payment system—including 52% of all 340B hospitals—would see their net OPPS payments decline next year if Medicare ends a nearly 30% cut in 340B hospitals’ drug payments that began in 2018,

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Financial Outlook Deteriorating for Nonprofit Hospitals in 2022 and Beyond, Credit Rating Agency Says

Mass General Hospital building entrance
Mass General Brigham is among the nonprofit health systems that have reported significant financial pressure this year.

In its mid-year report released this month, Fitch Ratings predicts a “deteriorating” outlook for nonprofit hospitals and health systems through the remainder of 2022 and into 2023. This is primarily driven by the “macro headwinds” of high labor costs and

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Medicare and Hep C Patients Would Save Over $100 Million if Plan Sponsors Adopted Generic Use, OIG Finds

pill in palm of open hand
The HHS Inspector General says Part D beneficiaries are far less likely than Medicaid beneficiaries to use lower-cost authorized generic versions of HCV drugs Epclusa (pictured above) and Harvoni.

Medicare Part D beneficiaries were much less likely to use lower-cost, authorized generic versions of highly expensive hepatitis C drugs Harvoni and Epclusa in 2019 and 2020 than Medicaid beneficiaries, driving up costs for Part D enrollees and the Medicare

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Federal Data Show 340B Sales Hit $43.9 Billion in 2021, Drug Industry Consultant Reports

screenshot of 2021 drug purchases at 340B discounted prices document
DSH hospitals accounted for 78.1% of all 340B program purchases in 2021, according to federal data obtained by Drug Channels Institute under the Freedom of Information Act.

Total sales in the 340B drug pricing program reached $43.9 billion in 2021, a 15.6% increase over 2020 sales and more than 3.5 times above total sales in 2015 ($12.1 billion), according to federal data obtained by Drug Channels Institute

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At Request of Senior GOP Lawmakers, GAO Studying Law That Gave Relief to Hospitals Forced Out of 340B Due to COVID-19

Government Accountability Office Building building-mounted sign
GAO is studying a new law that enables hospitals to maintain or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due to COVID 19-related changes in patient mix.

The Government Accountability Office (GAO), Congress’s watchdog agency, is conducting a study of a new law that enables hospitals to maintain or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due

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New PhRMA-Funded Study Questions 340B Hospital Eligibility Yardstick

bar charts of percent of claims of inpatients and outpatients in 2020
New PhRMA-funded research shows that Medicare beneficiaries who were inpatients at 340B DSH hospitals were approximately 35% more likely to have the Part D Low Income Subsidy (LIS) and to be dually eligible for Medicare and Medicaid than were beneficiaries served on an outpatient basis.

Patients receiving inpatient care at 340B disproportionate share hospitals are significantly more likely to be low income than those receiving outpatient care, according to a new study funded by the brand name drug trade group PhRMA.

Hospital eligibility in the

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340B Hospitals Treat Bigger Shares of Underserved Patients than Non-340B Hospitals and Clinics, Study Finds

bar chart depicting 3 characteristics of patients receiving part B drugs in 2019
340B hospitals treat higher shares of patients who are dually eligible for Medicare and Medicaid, Medicare patients with disabilities, and Medicare patients under 65, a new study found.

A new study, conducted by L&M Policy Research on behalf of 340B Health, finds hospitals participating in the 340B program treat much higher shares of underserved patients than non-340B hospitals and physicians’ offices. The study was released on July 29. 

Researchers

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Hospital Pharmacy Leaders Call Staff Shortages, Vendor Management Their Biggest Operational Challenges

circular chart indicating percentage of hospital operated onsite pharmacies
Seventy-one percent of hospital pharmacy leaders surveyed said their facility offered at least one in-house outpatient and/or specialty pharmacy and over half of those lacking such a pharmacy said they planned to open one at some point.

Hospital outpatient pharmacy leaders cite staffing shortages, managing multiple vendors, and navigating insurer red tape—specialty drug referrals and prior authorization requirements, specifically—among top workplace challenges, a new survey finds. As 340B providers continue to grapple with pharmaceutical manufacturer contract pharmacy

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340B DSH Hospitals Upped Services to the Poor During Pandemic’s Brutal First Year, 340B Health Says

Two bar charts comparing 340B DSH hospitals and Non-340B hospitals
Research commissioned by 340B Health found that 340B DSH hospitals spent more on uncompensated and unreimbursed care during COVID-19's first year than the year before despite worsening operating margins.

340B disproportionate share hospitals provided more uncompensated and unreimbursed care during 2020 despite a decline in operating margins associated with the COVID-19 pandemic, a new hospital-funded study shows.

The paper by Dobson DaVanzo for hospital group 340B Health compared 340B

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