September 12, 2014

Why 340B Works

Rich Umbdenstock, AHA President and CEO

There’s a great program that requires pharmaceutical manufacturers that participate in Medicaid to sell many outpatient drugs at discounted prices to health care organizations that care for a large number of uninsured and low-income patients. It’s called the 340B program, and it helps hospitals that care for highly vulnerable patients stretch limited federal resources to provide improved access and more comprehensive services. Ideally, we would like to see the program expanded to inpatient services, and we have fought for that. But some interest groups – led by the pharmaceutical industry – want policymakers to scale it back. American Hospital Association staff were joined by representatives of four hospitals and health systems this week to brief congressional staff on the benefits of the 340B program – and to correct misinformation. Read real-life stories and our Fact vs. Fiction resource, as well as my column in Morning Consult, to learn more about the many ways hospitals are using 340B savings to improve access and care.


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