In 2017 alone, 340B Tax-exempt Hospitals Provided More Than $64 Billion in Total Benefits to Their Communities
Improving the health of their communities is at the heart of every hospital’s mission.
Tax-exempt hospitals are required to publicly report on the ways in which they improve the health of the communities they serve yearly through the IRS Form 990 Schedule H, which is publicly available. In 2017, the most recent year for which this information is available, tax-exempt hospitals participating in the 340B drug savings program provided $64.3B in total benefits to their communities. View details under key resources.
340B Drug Savings Program
Congress created the 340B drug savings program to help those hospitals serving vulnerable communities stretch scarce federal resources as far as possible to support essential services for their communities.
Because it is funded by drug company discounts, not federal dollars, 340B doesn’t cost the government one penny – but it makes a big difference to vulnerable communities.
For example, the 340B program helps Henry Ford Health System in Michigan embed pharmacists in primary care and specialty clinics in Detroit to treat chronic diseases, and provide additional services for all patients including the meds to beds program, home delivery and courier services. As a result of savings from 340B, Oregon’s Providence Cancer Center has been able to continue providing life-saving infusion treatment for the uninsured and marginally insured patients referred from private practice medical staff members and also expand significantly its social work and spiritual care support. Johns Hopkins Hospital in Maryland uses 340B program savings to provide low-income patients with free and discounted outpatient drugs and other services, including telephone consultations, home visits and transportation services.
In return for being exempt from federal taxes, non-profit hospitals are responsible for publicly reporting on the variety of benefits they deliver, which are tailored to the particular needs of the communities they serve. These include financial support for those in need as well as a wide range of programs and services designed to meet the current and future health needs of all of those they serve. Examples include tailored programs to address identified community health needs, such as access to prescription drugs for low-income populations, free vaccinations, chronic disease management programs, transportation services for follow-up appointments and mental health services.
Programs like these and many more strengthen the bond between America’s hospitals and the communities they serve, and support hospitals’ efforts to advance health in America.