A drug discount program meant to help nonprofit hospitals cut down on spending in order to expand services for the poor has come under increased scrutiny as of late and has caught the attention of the Trump administration, according to an August 29, 2018 New York Times article.
The piece, written by Austin Frakt, adjunct associate professor at Harvard T.H. Chan School of Public Health, explained that the 26-year-old program requires pharmaceutical manufacturers to sell drugs at steep discounts to certain hospitals serving larger proportions of low-income and vulnerable people, such as children and cancer patients. According to one estimate, the program saved hospitals $6 billion in 2015.
A recent study, however, found there is a lack of evidence showing that the program, known as 340B, has led to more access to care for low-income patients or reduced mortality rates among them. Other studies have raised concerns that 340B hospitals have expanded into wealthier neighborhoods and that 340B may inadvertently raise costs.
Frakt noted that the Trump administration may require hospitals currently benefitting from 340B to do more to help poor patients.
Read the New York Times article: A Little-Known Windfall for Some Hospitals, Now Facing Big Cuts