Penn Medicine and other nonprofit health systems say savings from the 340B drug discount program provide vital financial support to their community missions.
The Hospital of the University of Pennsylvania, shown in a 2021 file photo, is among the nation's biggest participants in a federal program that gives qualifying nonprofit hospitals steep discounts on prescription drugs administered in an outpatient clinic or taken at home.
has been fighting for ways to keep 340B’s growth in check. That has pitted the influential drug industry against the equally powerful hospital sector.patients, plus a larger number of clinics that served low-income patients, according to an opinion piece published in January in the New England Journal of Medicine.expanded the types of hospitals eligible
has led to an environment where they feel they need to push back before it gets further out of control,” said Marc Hixson, CEO of Coeus, a Devon consulting firm with clients in the pharmaceutical and insurance industries.and little transparency. Hospitals can get the discount for practically But it’s too simplistic to suggest that Penn depends on the 340B program to be profitable, chief financial officer Keith Kasper said.
Temple said its 340B savings in fiscal 2023 was $130 million, up from $23 million three years earlier. The increase was largely due to a change in the way it provides specialty drugs to patients.This year, Main Line put three outpatient infusion centers that used to operate as part of Paoli Hospital, which does not qualify for 340B, under the Lankenau license. Now the three centers — in Collegeville, Exton, and Paoli — are able to benefit from buying steeply discounted drugs.
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