Financial toll of 340B discount restrictions magnifies for hospitals: 4 findings

Hospitals' estimated annual financial losses due to 340B discount restrictions have doubled since December 2021, according to a report from the advocacy group 340B Health.

A growing number of drugmakers have imposed limits on 340B discounts to safety net hospitals for drugs dispensed at community-based pharmacies. Between December and March, six more drugmakers imposed restrictions. 

340B Health surveyed more than 500 hospitals from November to December 2021 and again in March to assess how these increasing restrictions are affecting patients and hospitals. 

Four findings:

1. The median annual financial effect on disproportionate share hospitals, rural referral centers and standalone community hospitals went from $1 million in December to $2.2 million in March. 

2. Among these hospitals, 10 percent of leaders said they expect annual losses of $21 million or more.

3. Leaders from rural critical access hospitals said they also expect the median annual financial effect of 340B discount restrictions to double from $220,000 to $448,000. 

4. Eighty percent of hospitals surveyed anticipated having to cut some patient care services if the restrictions become permanent.  

View the full report here.

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