NRHA Defends Importance of 340B Drug Program
Today NRHA joined forces with the Safety Net Hospitals for Pharmaceutical Access (SNHPA) in a press event to set the record straight on the importance of the 340B drug discount program to rural and other safety net hospitals. NRHA has long fought for the inclusion of rural hospitals in the 340B program, and with the passage of health care reform, finally won the fight. The program allows certain safety net hospitals who provide care to vulnerable populations to purchase drugs at a discount from the manufacturer. Critics of the program, largely from pharmaceutical companies and a few members on Capitol Hill, claim the program provides too great of a financial benefit to hospitals. For rural hospitals this is untrue. Half of all the hospitals participating in the 340B discount are rural facilities. It is important to note that over 40 percent of rural hospitals operate at a financial loss. With Medicare cuts looming for many rural hospitals, threats of more cuts on the horizon, and the impact of Sequestration cuts kicking in, the 340B program has been a beacon of light for many rural hospitals. The program has allowed hospitals to maintain many critical services, critical staff, and in certain cases, keep their doors open - - maintaining them as a critical access point for both the delivery of health care and life-saving medications. Rural patients have been able to access life-saving drugs at an affordable price at a local hospital - - ending extensive travel time for many specialty drug treatments. SNHPA issued an important new report this morning that explains the 340B program's intent, describes how it supports participating hospitals' safety net mission, and rebuts the mischaracterizations of 340B being circulated by its critics. The report and other facts about the program can be found at 340BFacts.com. NRHA will continue to fight for the expansion of the 340B program to all rural provides, as well as the expansion of the program to include inpatient drugs.