Anthony DiGiorgio, DO, MHA’s Post

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Assistant Professor, Department of Neurological Surgery, UCSF; Affiliated Faculty, Institute for Health Policy Studies, UCSF; Director of Spinal Neurotrauma, ZSFG; Senior Affiliated Scholar, Mercatus Center

I’m thankful that I could share my thoughts at that very hearing. There is so much misinformation about 340B. For me, it comes down to two main points: 1- if hospitals need that money as a subsidy to fund everyday activities, they should just ask for a subsidy. Let’s open up the books of these institutions, which already get a huge subsidy with their non-profit status, and see why they are running in the red. Are they really losing money on Medicaid patients or are they just bloated and inefficient? 2- let the subsidy follow the patient. This is a drug benefit program. Why does the funding go to an institution? Imagine if we did that with SNAP, giving a bunch of money to large restaurant chains in exchange for their promise to use the revenue to provide food for poor people (with no oversight to ensure that’s done). We don’t do that; instead we give the benefit to the person who needs it. Let’s change 340B to match that model. Adam J. Bruggeman, MD, MHA, FAAOS, FAOA Daniel Choi Colin Yokanovich John Strom Peter Stein Adam Fein Deborah Williams Lisa Grabert Maya Babu, MD, MBA Katie Orrico Larry Bucshon, M.D. Ann M. Richardson, MBA

View profile for William Sarraille, graphic

Nationally Recognized Expert in Health Care and Life Sciences, Educator, Regulatory Consultant, Patient Access Advocate, Independent Director, and Retired Sidley Austin Partner

The Best #340B Hearing—Ever The recent hearing by the House Subcommittee on #Oversight and Investigations was balanced, constructive, and fair to all. It gives me real hope that it is possible to find consensus and to fix the program’s issues without harming the #safetynet. “Mutuality”: To the credit, generally, of both the subcommittee members and the witnesses, the hearing reflected, as one witness put it, a real sense of “mutuality”. All of the members and the witnesses, with few exceptions, reflected a commitment to ensuring that the program continued in a meaningful way AND that abuses are addressed. In addition, though not perfect, there was substantial effort to maintain the focus on the #patient, including the need to ensure they receive a meaningful portion of the discount at the #pharmacy counter. Hallelujah! But there were “low lights”. The Lowest of the Low: Rep. Schakowsky (D-Ill), who appeared confused, made an outright false statement. She contended that a #contractpharmacy restriction meant that patients of a clinic had to travel “an hour” to secure any access to drugs and that, as a consequence, they “simply don’t get [drugs] at all”. This is the false contention that a #retailpharmacy serving as a CP can only obtain #access to drugs when acting as a CP—demonstrably false. No Federal Spending: Rep. Castor (D-FL) struck a misinformed note by repeating the (false) myth that 340B operates “without any federal spending”. Castor was politely corrected by the witnesses, who spoke to how federal payers fund 340B profits through drug reimbursements. Not a Good Look: Matt Perry, the CEO of a #DSH in Ohio, departed from all the other witnesses by resisting #transparency. Asked by Rep Carter (R-GA) why he did not support the #340BAccessAct’s transparency proposal, Perry danced around the question and then said he opposed it because it supposedly “cherry picked” reporting measures. Perry’s testimony came off as discordant and evasive. Not Adding Up: Perry’s description of his facility’s policies did not sound right. He said that its drug discount program applied up to 400% of the federal #poverty limit, generating $3.5M in assistance. But he also stated that his institution secured $56M a year in 340B profits. That would mean that discounts for all patients up to 400% of FPL would be just 6.25% of profits or roughly a paltry 3.13% of reimbursements, which may explain why Mr. Perry opposes the 340B Access Act’s #transparency. He also said that 340B profits supported a vast array of services—his hospital's trauma center, network of specialist #physicians, doc recruitmemt, #EHR system, #charitycare, #Medicare and #Medicaid shortfalls, and its #oncology center. Perry’s implausible description of the use of 340B profits sounded like “creative accounting”. More low lights in the next post at noon Eastern. #healthcare #lifesciences #compliance #HRSA #HHS #patientsfirst 340B Report

In Key 340B Hearing, GOP Lawmakers Raise Concerns While Dems Urge Caution

In Key 340B Hearing, GOP Lawmakers Raise Concerns While Dems Urge Caution

https://340breport.com

Adam J. Bruggeman, MD, MHA, FAAOS, FAOA

Spine Surgeon, Opioid Expert, Entrepreneur, Health Policy Work

1mo

Both are great points and may end up being reflected in final legislative efforts. 340B programs were designed with good intentions but ultimately utilized in a way that was not intended

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