Latest news with #340BDrugPricingProgram
Business Wire
5 days ago
- Business
- Business Wire
Many 340B Disproportionate Share Hospitals Fail to Reinvest in Patient Care
WASHINGTON--(BUSINESS WIRE)--A new analysis of 340B hospital data found that the number of Disproportionate Share Hospitals (DSHs) participating in the 340B Drug Pricing Program 1 has surged more than sixfold, rising 565% from 2004 to 2023, with little evidence of commensurate growth in benefit to vulnerable populations. Yet, following 340B enrollment, DSHs' financial investments, including stocks, bonds and other financial instruments, soared. 'Most 340B disproportionate share hospitals have morphed into corporate profit machines, putting Wall Street-style growth ahead of patient care. Many hospitals that joined the program in 2016 and 2017 boosted their financial portfolios – while slashing the amount of free and discounted care they provided. This isn't just a betrayal of the program's purpose – but a betrayal of public trust,' said Mike Kapsa, Board Member, CARH. In theory, DSH participation in the 340B program should enhance care for vulnerable patients. But the data tell a different story: 340B DSHs are reducing their commitment to uncompensated care, all while growing financial reserves and investments. The study found DSHs that joined 340B between 2016 and 2017 reduced their spending on free or reduced cost care by 22%, on average, while increasing financial investments by 89% in the five years following enrollment. 'We continue to see growth in 340B drug sales and questions around hospital use of these funds,' said Amanda Forys, Managing Partner, Magnolia Market Access. 'This study supports the same narrative – disproportionate share hospitals are not directing 340B revenue toward patient care. Policies that promote appropriate use of 340B funds are needed to make sure vulnerable patients benefit from these steep drug discounts.' The analysis and report were completed by Magnolia Market Access, made possible through support from CARH. To access the full analysis, visit HERE and learn more about how non-profit DSHs are misusing 340B revenue and the importance of program oversight to ensure vulnerable patients benefit, not corporate interests. About Magnolia Market Access: Magnolia Market Access provides tailored strategies and insights to pharmaceutical companies, device manufacturers, and trade associations to meet their market access, HEOR, and healthcare policy needs. Our experts provide 360-degree perspectives and analysis of our in-house and client-specific clinical and real-world data to shape policy, communicate value, secure reimbursement, and drive patient access. For more information, visit About CARH: Community Action for Responsible Hospitals (CARH) is a non-profit organization of patient-focused stakeholders including labor unions, faith leaders, healthcare providers, consumer advocates, and public interest groups. For more information, visit 1 Established in 1992 under the Public Health Service Act, the 340B Drug Pricing Program is a federal program that provides discounts on outpatient prescription drugs to 'covered entities,' such as qualifying hospitals and clinics that treat a high number of low-income and uninsured individuals.
Business Wire
02-07-2025
- Business
- Business Wire
IntegriChain Deepens Pricing and 340B Advisory Services with Recognized Industry Expert
PHILADELPHIA--(BUSINESS WIRE)--IntegriChain, the leading provider of revenue optimization technology and insights for the pharmaceutical industry, today announced the hiring of Clay Willis. Willis brings IntegriChain more than a decade of experience in pharmaceutical consulting and advisory, predominantly around 340B, contracting, pricing, and market access issues. 'The ever-changing regulatory and pricing landscape poses a tremendous challenge to our customers, and nothing is more troublesome than managing the dynamics of the 340B program,' said Bill Roth, Senior Vice President and Managing Partner, Consulting & Advisory of IntegriChain. 'Clay brings decades of industry-proven leadership around these complex issues and will help IntegriChain to deliver even deeper insights as well as decision and operational support.' 'I am excited to join the IntegriChain Advisory team at this pivotal moment,' said Willis. 'Our enhanced Consulting and Advisory services, coupled with IntegriChain's data, technology, and outsourcing capabilities, make IntegriChain ideally suited to address today's drug commercialization challenges. I look forward to helping IntegriChain's customers optimize their revenue and mitigate risk in the complex and dynamic world of 340B, IRA, and other government programs.' About Clay Willis Clay will be responsible for expansion of IntegriChain's Government Pricing and Gross to Net Advisory practice, helping companies understand and navigate the dynamic life sciences and healthcare landscape, especially in the areas of 340B Drug Pricing Program ('340B') and impacts to manufacturers from the Inflation Reduction Act of 2022 ('IRA'). Clay's specific expertise is based on a detailed understanding of government programs (Medicaid, Medicare, VA/FSS, 340B) strategy, operations, compliance, and overall channel management. He has knowledge in Government Pricing calculation, gross-to-net optimization, forecasting, and 340B strategies, operations, and self-help related solutions. Most recently, Clay was a Director in Berkeley Research Group's Health Analytics practice where he assisted companies in 340B strategy and operational related matters including helping manufacturers implement 340B Center of Excellence governance and operating models. Previously, Clay held senior-level advisory roles at Deloitte and Huron Consulting where he provided operational, financial, compliance, and strategy related support to small, mid-size, and large pharmaceutical manufacturers. He is a frequent speaker at industry events and is a recognized expert on Government Programs (Medicaid, Medicare, 340B, and VA/FSS) and regulatory dynamics. About IntegriChain IntegriChain is the leading provider of revenue optimization technology and insights for the Pharma industry. The company's unique combination of data management, enterprise applications, consulting, and outsourcing helps manufacturers achieve better financial results by connecting commercial execution to net revenue. IntegriChain is backed by Nordic Capital, a leading sector-specialized private equity investor with a broad portfolio in Healthcare and Technology. IntegriChain is headquartered in Philadelphia, PA, with offices in Ambler, PA, and Pune, India. For more information, visit or follow on LinkedIn.
Yahoo
07-06-2025
- Business
- Yahoo
Pharmaceutical company AstraZeneca sues Utah Attorney General over discount medication law
SALT LAKE CITY () — The pharmaceutical company AstraZeneca has filed a federal lawsuit against Utah Attorney General Derek Brown and Utah Insurance Commissioner Jon Pike over a recent law that is intended to allow more pharmacies to have access to drug discount programs. In a lawsuit filed May 23, AstraZeneca alleges that Utah SB 69 is unconstitutional. The law was introduced and passed in the 2025 General Assembly, and it went into effect on May 7. The law prohibits drug manufacturers from restricting pharmacies from working with 340B entities, which help pharmacies and patients access medications at a discounted price. Senator Lee responds to the Trump-Musk feud The 340B Drug Pricing Program is a that 'enables covered entities to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services,' according to the Health Resources and Services Administration (HRSA) website. It means that drug manufacturers participating in Medicaid agree to provide 'outpatient drugs to covered entities at significantly reduced prices.' All organizations need to be registered and enrolled in the 340B program in order to purchase discounted medications. The law that established the 340B Program, Section 340B(a)(4) of the Public Health Service Act, specified certain types of for the program, such as medical centers that serve rural and other underserved communities and clinics that specialize in particular diseases like HIV/AIDS. SB 69 expands the scope, requiring drug manufacturers to provide the discounts to third-party pharmacies that are contracting with 340B entities, and this is what AstraZeneca is claiming is unconstitutional in its lawsuit. Utah House Republicans elect new leadership members The lawsuit states that because price controls 'disincentivize innovation and destabilize markets,' Congress chose to specifically limit the types of organizations that are eligible in Section 340B. The suit notes that for-profit pharmacies like Walgreens or CVS were not included as eligible, and there have already been several federal court cases ruling that block efforts to require drug manufacturers to provide discounts to contracted pharmacies. AstraZeneca claims in its suit that SB 69 'requires pharmaceutical manufacturers to offer 340B-discounted pricing for sales at an unlimited number of contract pharmacies,' expanding 340B discounts to 'an entirely new category of transactions not covered by Section 340B itself.' The suit alleges that SB 69 directly conflicts with federal law requirements, and therefore, it cannot be enforced against Astrazeneca or other drug manufacturers. AstraZeneca is asking the court to declare SB 69 unconstitutional and to order that Utah AG Derek Brown and Insurance Commissioner Jon Pike not enforce the law against AstraZeneca. Musk floats 'The American Party' after Trump tiff Myths VS Facts: What health officials want you to know about the MMR vaccine Good4Utah Road Tour: Willard Bay State Park Lori Vallow Daybell back in court, charged with conspiracy to murder ex nephew-in-law Man charged with assault for allegedly attacking and strangling neighbor Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Int'l Business Times
03-06-2025
- Business
- Int'l Business Times
At No Cost to Federal Government a Lifeline for America's Communities
As the U.S. healthcare system wrestles with rising costs and deepening disparities, one federal program quietly continues to serve as a financial and clinical lifeline for millions of Americans: the 340B Drug Pricing Program. Since its inception in 1992, 340B has enabled safety net hospitals, community health centers, and other providers to purchase outpatient medications at reduced prices. These savings aren't about boosting bottom lines—they're about keeping doors open, expanding access to care, and delivering essential services for all. At its heart, 340B is about getting medicine—and the healthcare services needed to ensure their safe and effective use—to people who otherwise might go without it. It empowers hospitals that serve high numbers of uninsured and modest-income patients, as well as Federally Qualified Health Centers (FQHCs) and Ryan White clinics that reach the working poor. The savings realized under 340B are not pocketed. These providers invest funds directly into programs that offer mental health services, treat substance use disorders, fund mobile clinics, and support chronic disease management. In many cases, access to the 340B program is the determining factor in whether a provider can afford to keep its pharmacy open to serve those who would otherwise go without treatment. The 340B program is a small program with big benefits. The discounts provided account for only 3% of drug companies' global revenues . At the same time, drug price increases continue to rise faster than inflation. In the United States, where drug companies already benefit from federally supported insurance programs and drug prices that are over three times higher than the rest of OECD countries, the 340B program is a reasonable accommodation to meet their obligations to be good corporate citizens. While the impact of the 340B program on drug companies is minimal, the impact on health is significant. Take community health centers, for example. These organizations are often the only providers in rural towns or urban neighborhoods. With the help of 340B, they can offer sliding scale fees, reach out to patients who are unhoused or living in poverty, and provide preventive care and health screenings that are crucial in addressing rising healthcare costs. For diseases like diabetes, 340B drug pricing ensures access to both medications as well as the patient education and healthcare provider services needed to effectively manage a complex chronic condition. In short, they make health more than a buzzword—they make it real. Hospitals also depend on 340B to sustain emergency rooms, neonatal intensive care units, and oncology programs. Small rural hospitals in particular often rely on these savings to remain operational. When one of these facilities shuts down, the consequences are immediate and severe: longer travel times for urgent care, delayed treatments, and a deeper strain on already stressed healthcare systems. Despite its impact, 340B has come under fire from some in the pharmaceutical industry and others who argue the program is being misused or lacks sufficient oversight. While oversight improvements are a worthy discussion, such criticisms ignore the real-world pressures providers face: skyrocketing drug prices, declining reimbursements, and the increasing demand for services as the population ages and grows more medically complex. Along with reasonable reforms that support program integrity, it's time to make common sense changes to reduce the regulatory burden on providers and let them focus on their main job—delivering high-quality health care to all. In the current budgetary environment, maintaining the 340B program is more important than ever. The program doesn't add to the federal budget. Instead, it gives healthcare providers the means to stretch existing resources further—just as Congress intended. Reducing or eliminating the 340B program to increase the profit of global pharmaceutical companies would shift costs to patients while simultaneously putting additional strains on state and federal budgets at the worst possible time. Undermining the 340B program would not just threaten individual institutions—it would unravel an already fragile health infrastructure. The people most affected would be those with the fewest options: modest and low-wage workers, rural residents, and those without insurance. The 340B program is a critical bridge between affordability and access, between policy and people. While reforms of the program may be useful, it is imperative they be guided with an overarching goal of improving how the program works for patients, not of providing a windfall for pharmaceutical manufacturers, who have experienced record profits since the program's inception. Weakening the 340B program would be short-sighted and harmful. Strengthening it is a fiscal imperative—for hospitals, clinics, and all communities. Author: Jane L. Delgado, Ph.D., M.S., is a highly esteemed and in-demand analyst and thought leader. She is the President and CEO of an NGO, Healthy Americas Foundation (HAF). She sits on the boards of the U.S. Soccer Foundation (Chair, Audit), McLean Hospital (Belmont, MA), the National Biodefense Science Advisory Board, the Lovelace Biomedical Research Institute (Investment Committee), and Argonne National Labs (Chair, Compensation).
Business Wire
12-05-2025
- Health
- Business Wire
Global Healthy Living Foundation Takes National 340B Reform and Transparency Briefing To New York
UPPER NYACK, N.Y.--(BUSINESS WIRE)--Steven Newmark, Chief Legal and Policy Officer of the Global Healthy Living Foundation (GHLF), takes the organization's national 340B reform message to a policy briefing in Albany, NY, on May 13, addressing the national implications of unchecked expansion of the federal 340B Drug Pricing Program — a critical but increasingly controversial tool designed to support healthcare access for underserved populations. 'The 340B program is a lifeline when it works as intended — but without oversight, it risks becoming a loophole instead of a safety net.' Newmark will join lawmakers, academic experts, and fellow advocates to urge greater transparency and accountability in how hospitals and other healthcare institutions use the steep drug discounts they receive under 340B. While originally intended to help vulnerable patients afford essential medications, the program has come under scrutiny for allowing covered entities to pocket savings without passing them along to patients. 'The 340B program is a lifeline when it works as intended — but without oversight, it risks becoming a loophole instead of a safety net,' said Newmark. 'We need reform before expansion. Patients, not institutions, should be the primary beneficiaries.' As it has in other states, GHLF, a national nonprofit that advocates for people living with chronic illness, is raising concerns about proposed legislation in New York (S.1913 / A.7789) that would make it easier to expand 340B eligibility to additional entities without requiring clear patient benefit or public accountability. The Foundation has issued a memorandum in opposition, warning that such policies may incentivize profit-seeking behavior at the expense of patient care — a trend already observed across multiple states. The May 13 policy forum, co-hosted by Assemblymember Amanda Septimo and the Community Liver Alliance, comes amid growing national debate about the future of 340B. Lawmakers in Congress have also introduced bills to audit and modernize the program, reflecting a bipartisan understanding that reform is needed to preserve the program's original mission. Why It Matters Nationally More than $50 billion in drug discounts flow through 340B each year — yet little data exists on how those savings are used. Chronic disease patients, especially those with high drug costs, often see no direct community benefit. Without reform, analysts warn the program may undermine drug pricing systems and continue to erode public trust. 'This isn't just a New York issue. Every state should be asking: is 340B still doing what it was meant to do?' said Newmark. GHLF urges lawmakers nationwide to adopt transparency mandates, patient benefit requirements, and regular audits before allowing the program to expand further. About GHLF The Global Healthy Living Foundation is a U.S. based, 501(c)(3) nonprofit, international organization whose mission is to improve the quality of life for people with chronic illnesses by advocating for improved access to health care through education, patient-centered clinical research, support, advocacy, and economic and policy research. GHLF is also a staunch advocate for vaccines. The Global Healthy Living Foundation is the parent organization of CreakyJoints®, the international, digital community for millions of people living with arthritis and their supporters worldwide who seek education, support, activism, and patient-centered research in English, Spanish, and French. In addition to arthritis and autoimmune disorders, GHLF supports dermatology, gastroenterology, neurology, cardiology, oncology, infectious disease, rare disease, and pulmonary patients through a host of different programs and activities which draw more than 700,000 patients a month to GHLF websites and create more than 10 million impressions a month on seven social media platforms. In 2024, GHLF had more than 1 million views and listens with its patient-centered audio-visual content, found on YouTube and podcast platforms. GHLF never asks the public for donations, receiving funding instead through governments, non-governmental organizations, foundations, industry, family foundations, and GHLF Co-Founder Louis Tharp. Visit for more information.
