Penn hospital gets $86M in 340B settlement

The Hospital of the University of Pennsylvania, one of the largest participants in the 340B drug pricing program, is poised to be granted $86 million by the government as part of a legal settlement, The Philadelphia Inquirer reported Oct. 23. 

Penn Medicine, based in Philadelphia, ranks among the leading beneficiaries nationwide of the 340B federal initiative, which is designed to offer substantial discounts on prescription drugs used in outpatient clinics or for at-home use to eligible nonprofit hospitals. 

The settlement, according to the publication, effectively addresses past reductions in the program. 

For example, the sum allocated to Penn's primary hospital ranks as the sixth-largest payment to any hospital across the country and constitutes the majority of the $129.2 million designated for the University of Pennsylvania Health System.

Penn Medicine told the publication that under the program, it saved $717 million in the year that ended June 30. It is using some of those savings to help pay for $17.8 million in unreimbursed care in emergency departments as well as to operate HUP Cedar, which provides emergency, inpatient and behavioral health services.

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