Annualized losses due to contract pharmacy restrictions December 2021 vs. March 2022 comparison
340B hospitals' annualized losses due to drug makers contract pharmacy restrictions grew sharply during Q1 2022, a survey found.

Survey: Hospitals’ Losses from 340B Contract Pharmacy Restrictions Ballooned During Q1 2022

The financial impact to 340B hospitals due to drug manufacturers’ restrictions on contract pharmacy more than doubled between December 2021 and March 2022, a new survey shows.

Hospital trade group 340B Health said the median annualized loss of contract pharmacy savings to disproportionate share (DSH) hospitals, rural referral centers (RRCs), and sole community hospitals (SCHs) rose from $1 million in December (when only eight manufacturers had restrictions) to $2.2 million in March (by which time the number of manufacturers had risen to 14). Two more manufacturers have imposed conditions since then. Ten percent of such hospitals said they expect annual losses of $21 million or more.

The median annualized financial impact on critical access hospitals went from $220,000 in December to $448,000 in March. Ten percent said they expect annual losses of $1.3 million or more.

“These drug companies are draining vital resources from the health care safety net by blocking hospitals’ access to 340B discounts through community and specialty pharmacy partners,” said 340B Health President and CEO Maureen Testoni. “By focusing their unlawful policies on some of the costliest specialty drugs on the market, these companies are pocketing 340B savings for themselves and circumventing penalties Congress included in 340B to inhibit massive drug price hikes.”

The findings are based on surveys of 340B Health members in November and December 2021 and again in March 2022. More than 500 hospitals responded to each survey. 340B Health released the results this morning.

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