Why 340B Matters to Texas | 340B Matters
page-template-default,page,page-id-15834,ajax_fade,page_not_loaded,,qode-title-hidden,qode-theme-ver-9.1.3,wpb-js-composer js-comp-ver-4.11.1,vc_responsive

Local Hospitals Could Lose Millions in Savings

“As a large public hospital system in a non-Medicaid expansion state that's operating in a county with more than 970,000 uninsured, reliance on the 340B program is critical for Harris Health to provide the needed pharmaceuticals to the patients served.”
– Harris Health System

Today, the 340B Matters coalition launched efforts in Texas to help educate the public, lawmakers, and healthcare providers about the negative impact the Health Resources and Services Administration’s (HRSA) proposed “mega-guidance” restrictions could have on patients and communities across the state.


The consequences of the proposed restrictions would adversely affect the ability of healthcare providers in Texas, especially those in rural areas, to care for their patients and cost taxpayers as a result.


The 340B Matters coalition urges Texas voters to contact their elected representatives and tell them what’s at stake.


“HRSA's proposals would significantly reduce the volume of drugs eligible for 340B drug discount pricing, jeopardizing our hospital's ability to serve the most disadvantaged patients in our community, including low-income patients, uninsured patients, and patients receiving cancer treatments.” – Gonzales Healthcare Systems
“The 340B Program plays a pivotal role in enabling Good Shepherd to fulfill its mission of improving the health of the communities we serve … Good Shepherd shoulders the majority of the financial burden for charity and uncompensated care in our community.” – Good Shepherd Medical Center
“As a safety net provider, we offer numerous programs that support health care initiatives in our community … Other services include infusion clinics in our hospitals that operate at a deficit with 340B pricing, provision of free discharge prescriptions to qualified patients, and 340B discounted discharge prescriptions for uninsured patients at registered contract pharmacies. These are just a few examples of Memorial Hermann's ability to provide health services at minimal or no cost due to the savings afforded to our system by the 340B Program.” – Memorial Hermann Health System
“We believe the proposed guidance will have a significant negative impact on the health of our patients and the health of our communities by reducing access to affordable prescriptions, and through related cost increases, by reducing access to outpatient primary, specialty and chronic care services … Because of our mission, our high uninsured and Medicaid patient populations, and our limited local funding, reduced access to 340B discounts will result in contraction of services and reduced access to care for our patient populations.” – Teaching Hospitals of Texas

***NOTE: The above information is derived from public comments filed on regulations.gov in response to HRSA’s proposed mega-guidance. Use here does not imply any affiliation with 340B Matters or endorsement by the entities themselves.


Entity Name

Mega-Guidance Impact


Gonzales Healthcare Systems Provides over $1.5 million in care for various inpatient and outpatient care. This is in addition to over $5 million that is provided to unfunded patients. https://www.regulations.gov/document?D=HRSA-2015-0002-1221
Harris Health System Deficit projection would rise to over $31M
if the 340B program were to be repealed.
Memorial Hermann Health System Provider employment provision could potentially decrease 340B savings by 90% and could result in smaller community hospitals simply withdrawing from the program. https://www.regulations.gov/document?D=HRSA-2015-0002-0385
Good Shepherd Medical Center Would result in $700 -800k additional annual expenses and would lose approximately $900,000 annually if no longer allowed to provide 340B medication to discharge patients. https://www.regulations.gov/document?D=HRSA-2015-0002-0472
Mother Frances Jacksonville Provided over $7.5 million dollars in charity care during last fiscal year. The 340B program offset that loss by just over 10%. The proposals outlined in the 340B Drug Pricing Program Omnibus Guidance are expected to reduce 340B total benefit to less than half of that. https://www.regulations.gov/document?D=HRSA-2015-0002-0875
University Health System Estimates the loss of 340B in the correctional setting will add $3.52 million to its acquisition costs. The proposed guidance would have added $2.9 million to UHS’ medication acquisition cost over the past 12 months. https://www.regulations.gov/document?D=HRSA-2015-0002-1001
CHRISTUS Health CHRISTUS Texas 340B facilities have recently provided
more than $372 million in total Community Benefits and charity care.

To learn more about the issue visit our website: https://340bmatters.org/


 Become a Fan on Facebook

Follow us on Twitter


Please contact Hans Klingler at hans@340bmatters.org if you have any questions.

Want To Stay Up-To-Date On The Latest 340B News?