A little-known windfall for some hospitals, now facing big cuts

Research corroborates that hospitals aren’t using the 340B program as intended.

  • The 340B program may have raised costs by encouraging care in 340B-eligible hospitals that could have been provided less expensively elsewhere
  • The program also encourages providers to use more expensive drugs
  • Medicare lowered the prices it pays for 340B drugs by 27%. But it does little to address how much insurers and individuals pay for prescription drugs or the value they obtain from them

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