The 340B program requires drug manufacturers to offer outpatient drugs to certain safety-net healthcare organizations at reduced prices.
In 2011, nearly a quarter (24 percent) of 340B hospitals provided charity care that represented less than 1 percent of total patient costs. That number grew to 37 percent of 340B hospitals in 2014, according to the Morning Consult, which cites an Averle Health analysis.
Avalere found 64 percent of 340B hospitals are providing less charity care than the national average for all hospitals, including for-profit ones. According to Avalere, the average level of charity care for all hospitals dropped from 3.3 percent to 2.2 percent from 2011 to 2014.
If 340B programs were working correctly, a greater number of 340B hospitals would be providing charity care closer the national average for hospitals nationwide, according to the Morning Consult.
One reason this discrepancy exists is that current eligibility criteria for 340B program qualifications have not adapted to Affordable Care Act’s goal of helping providers assist underserved populations. The criteria also increases hospital eligibility when uninsured patients apply for Medicaid, meaning 340B qualified hospitals may not be providing charity care to intended patients.
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