Hospitals, drug companies and oncology patients are in an uneasy financial dance
When it comes to drugs, pricing and trends, hospitals, the pharmaceutical sector and patients–particularly those battling cancer–are in a constantly shifting and often uneasy financial position.
In a report conducted on behalf of the Community Oncology Alliance by the Berkeley Research Group, the COA noted that disproportionate share hospitals have seen their 340B revenue grow from 12 percent of hospital outpatient revenues in 2003 to almost 40 percent in 2013 (340B is an outpatient-based program).
When all 340B participant hospitals are factored in, the percentage of 340B-related revenue increases to 47 percent for 2013. The report did note that the Affordable Care Act has expanded 340B eligibility significantly in recent years, increasing from 430 in 2010 to 1,546 in 2013.
Meanwhile, 340B-related purchases grew from $6 billion in 2010 to $7.5 billion in 2013, a 25 percent increase. During that same time period, Medicare Part B oncology drug reimbursement grew 86 percent at hospitals continuously enrolled in the 340B program, compared to a 58 percent growth rate at hospitals that were not enrolled in 340B.
The 340B program has also come under fire for some hospitals purchasing the drugs at a steep discount and then selling them to commercially insured patients for a significant profit.
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