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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.

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

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, a new study found.

Avalere Health released the analysis Wednesday. Avalere’s analysis was funded by the Community Oncology Alliance, the trade association for cancer physicians in private practice. It did a similar study in 2018 for COA. COA says hospitals’ access to 340B discounts helps drive private oncology practices out of business. Hospitals say the closures are part of a wider trend of physicians quitting private practice and improved cancer care patient outcomes in hospital settings. More than three dozen biopharmaceutical companies are COA corporate members.

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, a new study found.

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