340B Drug Pricing Program

The Background

Today, all nine Munson Healthcare hospitals participate in the 340B program. In addition, each covered entity utilizes contract pharmacies through which additional 340B savings are had. Munson Healthcare also operates the Thomas Judd Care Center (HIV/AIDS) and the Bleeding Disorder Center, which participate in the program. All told, for the Munson Healthcare system, participation in the 340B drug-pricing program results in over $10 million annually in realized savings.

While the 340B program enjoys bi-partisan support and is budget neutral, it is not liked by the pharmaceutical industry. As a result, there have been both administrative and legislative efforts to curtail the scope of the program and reduce savings for providers. We anticipate a continued focus on the program in this congress and next year's legislative session.    

The Update

With a new Congress convening in Washington, DC, we once again expect legislation to be introduced that would negatively impact the 340B drug pricing program.

Call to Action

None at this time, but it is important to press upon our federal elected officials the importance of the 340B program for Munson Healthcare and the patients we serve.