Press Release

340B Program needs Congressional oversight & reform

PhRMA March 25, 2014

WASHINGTON, D.C. (March 25, 2014) – Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO John J. Castellani issued the following statement today:

“As a member of the Alliance for Integrity and Reform of 340B (AIR340B), PhRMA recognizes the value and importance of the 340B program and is committed to ensuring the program fulfills its promise to vulnerable and uninsured patients. A new AIR340B report, “Unfulfilled Expectations: An analysis of charity care provided by 340B Hospitals,” provides further evidence that the program is in urgent need of expanded Congressional and administrative oversight and reform. 

“The report, which was compiled from publicly available data that was analyzed by Avalere Health, found that charity care represents 1% or less of patient costs for approximately one-quarter of 340B hospitals. It also found that two-thirds of 340B hospitals provide less charity care than the average U.S. hospital. As additional evidence that the program has expanded beyond true safety net hospitals, the analysis revealed that about one-fifth of 340B hospitals provide 80 percent of all charity care delivered by 340B hospitals.

“This new analysis demonstrates the extent to which the current hospital qualification criteria is misaligned with Congress’ goal of supporting vulnerable patient access to prescription medicines. We owe it to these patients to ensure that the program remains sustainable in the future and, as such, it is critical to revise the eligibility criteria for hospitals and improve accountability and oversight. PhRMA looks forward to working with stakeholders to strengthen the program for those it was intended to help: uninsured and vulnerable patients.”

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research and biotechnology companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested approximately $550 billion in the search for new treatments and cures, including an estimated $48.5 billion in 2012 alone.

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