A new report from the U.S. Senate Committee on Health, Education, Labor and Pensions, led by Chairman Bill Cassidy, is calling for reforms to the 340B drug pricing program following an investigation into how covered entities utilize program revenue.
The investigation, which started in September 2023, examined whether hospitals and other participants were using 340B savings to benefit patients, according to an April Senate report.
Investigstors reviewed data from Cincinnati, Ohio-based Bon Secours Mercy Health and Cleveland Clinic, along with contract pharmacies including CVS Health and Walgreens, and drug manufacturers Amgen and Eli Lilly.
The investigation found that Bon Secours Richmond Community Hospital generated $276.5 million between 2018 and 2023 in 340B benefits and Cleveland Clinic reported $933.7 million in 340B benefits from 2020 to 2023.
However, the report claimed neither institution directly passed 340B discounts to patients. Bon Secours Mercy Health maintained that financial assistance policies and not direct discounting better served patients’ needs. Cleveland Clinic reported it did not provide any drug discounts to patients through the program.
In response, Cleveland Clinic stated, “We respect Senator Cassidy’s perspectives on 340B program reforms. We have adhered to the program’s intent and requirements as they currently exist. We welcome the opportunity to work with Congress to ensure the 340B program continues to serve patients as effectively and equitably as possible.”
“As the cost of providing healthcare continues to rise, the 340B program helps us save resources that would have otherwise been spent on purchasing medications but instead can be directed to providing care, at no additional taxpayer expense. In addition, the 340B program allows us to continue caring for patients who cannot pay for services, invest in our local communities, preserve critical subsidized health services, provide continued access to pharmacies, and offer pharmacy-related benefits to our patients.”
In an April 28 email shared with Becker’s, Bon Secours Mercy Health stated, “As a non-profit, mission-based health care organization, Bon Secours Mercy Health is dedicated to providing compassionate, affordable care to the patients and communities we serve. We are committed to transparency and accountability related to savings achieved through the 340B Program, which serves as a critical source of funding for current and future investments in our community.”
The system continued, “We appreciate the collaboration we’ve had with Senator Cassidy’s office over the past eighteen months, and we realize the importance of questions raised about how discounted prices from drug manufacturers allow us to provide care in the communities we serve. We stand behind the high-quality health care provided by Richmond Community Hospital to the residents of the City of Richmond, and we are grateful for the important investments in the East End community through participation in the 340B Program.”
