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340B Spotlight: A lack of charity care among 340B hospitals

Allyson Funk   |     September 17, 2015   |   SHARE THIS

340BSpotlight_HeaderWe’ve talked before about charity care and the 340B drug discount program. Research  found most 340B hospitals provide little to below average levels of charity care.

Why is this important? Because 340B was created to help vulnerable patients access the medicines they need. But if a hospital has a low charity care rate, are they really helping those vulnerable or uninsured patients?

Nearly seven in ten 340B hospitals have charity care rates below the national average of 3.3 percent for all hospitals. And, charity care represents one percent or less of patient costs at nearly one in four 340B hospitals. 

340b_1Further, the same research found approximately one-fifth of 340B hospitals provide 80 percent of all charity care delivered by 340B hospitals, suggesting a small number of entities are picking up the slack for others in the program.

340BSpotlight_ThumbnailLagging charity care is just one of the many reasons the 340B program needs reform to ensure uninsured or vulnerable patients are the ones benefitting.  For more check out our chart pack or stay up-to-date on the latest 340B news with our 340B Spotlight posts.

Allyson Funk

Allyson Funk Ally is a former senior director of public affairs at PhRMA focused on advocacy issues for the biopharmaceutical industry. Her expertise includes Medicare, Medicaid, 340B, health reform and more. Prior to PhRMA, her experience included leading health communications for a large membership organization, supporting public affairs clients and working for the governor of Louisiana.

Topics: 340B, 340B Spotlight

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