CHA News Article

Study on 340B Program Draws Mixed Reviews

This month’s issue of the American Hospital Association’s (AHA) Health Affairs details problems with a study that determined hospitals are using the 340B drug pricing program to generate profits. The AHA blog post about the study concludes that problems with the study’s design provide a questionable framework for analysis that does not focus on the geographic areas in which hospitals serve their communities. This results in conclusions that ignore the effects of changes to the 340B program since 2004, and overemphasizes the very small differences in socioeconomic factors of communities served by disproportionate share hospitals and by hospital-affiliated clinics that registered for the 340B program prior to and after 2004. AHA notes that hospitals participating in the 340B program provided $28.4 billion in uncompensated care in 2012, representing 62 percent of all uncompensated care provided by America’s hospitals in 2012.