The 340B Drug Pricing Program is a vital resource in rural communities around the state.
written by betsy donahue
The 340b drug pricing program sounds technical, but simply put, it’s a small program with big health benefits for West Virginians.
Since its inception in 1992, 340B has provided much-needed financial help to medical facilities that serve a high percentage of uninsured and low-income patients by requiring pharmaceutical manufacturers to sell outpatient drugs at discounted prices. Eligible entities are safety-net—or nonprofit—health care organizations that meet certain federal designations or receive specific types of federal funding. Eligible patients are those who have an established provider/patient relationship at the facility. The program is solely funded by the pharmaceutical industry, involving no taxpayer dollars.
In turn, these health care systems can stretch their resources by using 340B savings from drug reimbursement to offer additional services such as free immunizations, mental health clinics, community health programs, diabetes education, pulmonary care, dentistry, sports physicals, and help for uninsured patients.
One well-known advocate for 340B in West Virginia is Karen Bowling, president and CEO of WVU Medicine Princeton Community Hospital and executive vice president of government affairs for WVU Medicine. As a past chair of the federal 340B Health Board of Directors, she saw the benefits of this program for all states. Nearly 2,700 health care facilities nationwide participate, according to the American Hospital Association.
The benefits of 340B vary throughout the state. “It’s all about taking the savings and using them as needed,” Bowling says. “For some, it is health screenings for patients, a diabetic educator in your community, a counselor for substance abuse—or it could be used for critical service lines such as OB and pediatrics.” In the WVU Medicine system, 340B funds help provide mobile mammography and mobile lung health screening.
These are much-needed dollars, Bowling says. After all, West Virginia consistently ranks in the bottom five states nationwide for overall health, with chronic issues of heart disease, stroke, obesity, and COPD. “We have some very sick people and a very rural state, and it’s important that they have access to good health care close to home,” she says. “If rural facilities, for example, don’t have expensive oncology drugs, a patient might have to travel two to three hours to get help, and many just won’t do that.” In addition, our rural neighbors might face limited transportation and poor broadband connectivity, making communications with larger facilities difficult.
Despite the proven value of 340B and constant oversight by the Health Resources and Services Administration, the program is challenged. Pharmaceutical companies are attempting to replace up-front discounts with rebate-style reimbursement, which would cause critical cash-flow issues for covered entities.
“Some hospitals need these funds to stay stable, and others just to remain open,” Bowling says. “The program has huge benefits and works very well, and it’s just a drop in the bucket for the pharmaceutical industry.”
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