New Healthsperien report finds that 340B drug discounts are a small share of drug company revenues

AHA March 12 released a new report from Healthsperien on discounts to 340B hospitals through the 340B Drug Pricing Program relative to drug company revenues and revenue growth. The report, which was prepared for the AHA, demonstrates that while the 340B program has grown, it remains a very small share of drug company revenues. At the same time, this growth has allowed 340B hospitals to provide more care to more patients just as Congress intended when it established the program over 30 years ago.

The report also describes the forces that have increased the scope of the 340B program, including legislation that expanded program eligibility to additional types of hospitals, such as critical access hospitals and other rural providers; policy decisions that have shifted care delivery from inpatient to outpatient settings; and changes to patent and extended exclusivity policies for drug companies. Other forces shaping the program include increases in the use of drugs, including both specialty drugs and medical advances that rely on drugs over other interventions, and sharply rising drug prices.