24 Jun Managed Healthcare Executive: 340B Program Helps Rural Hospitals Stay Afloat
“Rural hospitals are facing a crisis, as many close or struggle to stay on top of rising expenses. But a new study shows that savings from the 340B drug pricing program are helping rural hospitals pay for other programs.
The report from 340Bhealth.org comes from a survey of over 1,300 hospitals participating in the 340B program. The main finding from the report is that 95% of the surveyed hospitals are using savings from the program to fund other uncompensated care, while 90% are using the program to provide services like clinical and pharmacy services and other auxiliary services such as transportation, translation, and social services.
Close to 90% of surveyed hospitals said 340B savings improved outcomes, like medication adherence (81%), reducing preventable readmissions (78%), and improving clinical outcomes (60%) for patients living with HIV, hepatitis, and other conditions. Seventy percent of hospitals reported using savings to provide discounted or free drugs to patients who could not afford them.
Of the rural hospitals surveyed, 93% said savings from the program are helping them to stay open and half said a loss of those savings would result in closure. Overall, about two-thirds of all hospitals said a loss of 340B savings would affect their ability to provide uncompensated care.”