The American Hospital Association and hospitals participating in the 340B drug program released a new set of principles for ensuring good stewardship of the program.
The announcement comes as the 340B program has become a target of HHS, which proposed making payment cuts to participating hospitals in July. The program allows certain hospitals to purchase outpatient drugs at a much lower cost. In response the proposal, which came from CMS, hospital associations, including AHA, launched a lawsuit.
“The 340B stewardship principles will help hospitals better tell their story of how this crucial program is delivering a variety of important benefits to patients and communities,” Rick Pollack, president and CEO of the AHA, said in a statement. “In an era of skyrocketing drug prices, 340B has been critical in helping hospitals expand access to comprehensive health services, including lifesaving prescription drugs.”
The principles include:
- Communicate the value of the 340B program
- Disclose estimated savings of 340B hospitals
- Continue rigorous internal oversight
Communicating the value involves a hospital publishing an annual narrative on the benefits of the 340B program, while also disclosing annual estimated savings. Oversight will ensure the hospital meets program rules and guidance. The principles are not anticipated to add substantial costs to participating hospitals.
The initiative will bring greater transparency to the program, according to AHA. The good stewardship principles were endorsed by America’s Essential Hospitals, the Association of American Medical Colleges, the Catholic Health Association of the United States, the Children’s Hospital Association and 340B Health.
Hospitals maintain the program is essential.
“340B helps provide a range of health care services to Maine’s underserved and uninsured patients and communities,” said Michelle Hood, president and CEO of Eastern Maine Healthcare Systems, which has joined AHA in the initiative. “Providing good stewardship of the 340B program will help ensure that participating hospitals can offer these comprehensive services that expand patient access to care.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."