The Health Resources and Services Administration should increase its oversight of private nonprofit hospitals that participate in the 340B drug savings program to ensure they meet eligibility requirements, the Government Accountability Office said in a report released today. Specifically, GAO said HRSA should ensure that it uses reliable information to verify nonprofit status for all nongovernmental hospitals in the program, verify that each of these hospitals has a contract with a state or local government as required, and verify that the contract was in effect prior to the beginning of the audit review period. GAO also recommended that HRSA revise its contract audit procedures and provide auditors with more specific guidance on how to determine whether the contracts require the hospitals to serve low-income individuals not eligible for Medicaid or Medicare. In comments in the report, the Department of Health and Human Services concurred with all of the recommendations except the one to verify that all nongovernmental hospitals have the required contract with a state or local government.
 
AHA Executive Vice President Tom Nickels said, “We look forward to reviewing this report closely. Most important is that tax-exempt hospitals are accountable to the government and their communities in a variety of important ways. For example, they publicly report annually the benefits they provide. In the most recent year for which comprehensive data is available, 340B tax-exempt hospitals provided more than $56 billion in total benefits to their communities.”

Headline
The AHA, the Maine Hospital Association and four safety-net hospitals Oct. 9 filed a lawsuit in the U.S. District Court for the District of Maine challenging…
Headline
The AHA, the New Hampshire Hospital Association and 340B Health have filed an amicus brief supporting Mary Hitchcock Memorial Hospital’s request for a…
Headline
The Department of Health and Human Services’ Health Resources and Services Administration Oct. 1 announced approval of 10 drug companies to participate in the…
Headline
The Centers for Medicare & Medicaid Services’ 340B Part D claims data repository became available Oct. 1 for voluntary data submissions. While data…
Headline
The AHA Sept. 23 submitted comments on the Strengthening the Exercise of Controls and Upgrading Requirements for Efficiency in 340B Act (SECURE 340B Act). The…
Headline
As policymakers continue to discuss healthcare legislation, the AHA has developed several new resources to help hospitals and other stakeholders understand the…