Nonprofit hospitals participating in the 340B program are expected to provide higher levels of charity care and community benefit, but a new analysis questions whether that is in fact happening.
New report adds to questions about nonprofit status of 340B hospitals.
Nonprofit hospitals participating in the 340B program are expected to provide higher levels of charity care and community benefit, but a new analysis questions whether that is in fact happening. The analysis examined the operating margins and charity care levels of 340B hospitals, finding financial wellness did not translate to 340B hospitals providing high levels of free or reduced cost care to vulnerable patients.
As policymakers continue to deliberate on reining in health care costs and helping patients better afford their care, they should factor in the increasing role hospitals — especially those that participate in the 340B program — play in determining the cost of medicine.
Fixing the 340B program can meaningfully improve patients’ ability to access and afford their medicines if Congress takes a comprehensive approach. This includes ensuring the program reaches low-income or otherwise vulnerable patients, the intended beneficiaries of the program; strengthening eligibility requirements so only true safety-net providers participate in the program; and instituting stronger accountability measures throughout 340B to keep the program on track. Learn more here.
View the full analysis here.
