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 340B program for disproportionate share hospitals (DSH), rural referral centers and sole community hospitals is partly determined by the institution’s DSH patient adjustment percentage, a reflection of a hospitals inpatient Medicaid and Supplemental Security Income (SSI) days. Free-standing children’s hospitals and free-standing cancer hospitals do not receive DSH funding. However, they must demonstrate that their inpatient mix would result in a DSH adjustment payment percentage of 11.75 or greater. A hospital with a DSH adjustment percentage of 11.75% translates into a patient population of close to 30 percent Medicaid or SSI inpatients. Critical access hospitals do not receive DSH funding and their eligibility is not determined by patient mix.
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.
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