New Survey Demonstrates Value of Drug Discount Program to Patients, Hospitals - July 6, 2011

A few months ago, many NAPH members completed a survey about their participation in the 340B drug discount program. The results are in; data indicates the program is crucial both to hospitals and their patients.

The study of nearly 400 hospitals was commissioned by Safety Net Hospitals for Pharmaceutical Access (SNHPA). It was written by two former analysts at the U.S. Department of Health and Human Services Office of Inspector General (OIG), who produced a series of influential reports on 340B while at OIG.

Among the findings:

Significant savings

• Hospitals report saving 27 percent through the program, resulting in an average of $5.2 million in cost reductions per respondent.

340B savings are critical to hospital operations

• 100 percent of respondents reported savings are important; 85 percent cite them as critical.
• 98 percent of respondents state that a loss of 340B savings would have an adverse impact on the organization and its patients.
• 83 percent of respondents attribute the continuity of their safety-net operations to 340B savings.

340B savings reduce costs to patients

• 74 percent of respondents with an outpatient pharmacy use 340B savings to reduce the price of drugs to patients.
• More than two thirds report using 340B savings to offset low pharmacy reimbursement.

340B program savings increase patient access to pharmacy services

• 75 percent of respondents use 340B savings to increase patient access to drugs.
• More than half of respondents use 340B savings to support enhanced pharmacy services.

Hospitals face challenges

• 40 percent of respondents reported difficulty obtaining outpatient drugs at the 340B price, even though manufacturers are required to provide these discounts.
• Rural and cancer hospitals expressed concern about a restriction established under last year's health reform law that prevents them from accessing 340B discounts on expensive drugs used to treat rare diseases.
• Hospitals want the program extended to the inpatient setting to reduce costs and relieve them of administrative burdens. Legislation to accomplish that goal is expected to be introduced in Congress soon.

Please share the report and SNHPA's news release with your hospitals' public relations officer and your local health care reporters. If you have any questions, please contact SNHPA Executive Editor Tom Mirga at tom.mirga@snhpa.org or (202) 552-5853.