report

Report claims 340B hospitals are leveraging discounts to increase profits from cancer drugs

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Specific basic safety net hospitals are charging insurers an common of 3.8 occasions far more than the acquisition expenditures for oncology medicines, although relying on the drug, the markup can be a great deal higher — up to 11 occasions the acquire rate, a new report has identified.

Launched in 1992, 340B is a federal application that needs drug suppliers to supply outpatient medicines at appreciably diminished costs to suitable health care companies that are intended to treat substantial figures of uninsured and very low-earnings patients. Hospitals claim the cost savings are applied to lessen the rate of medicines for patients and develop wellness solutions, but the report statements the discounts are being captured by the hospitals as gains rather than being passed on.

According to the Group Oncology Alliance, which authored the report, 340B Disproportionate Share Hospitals are entitled to a 23.1% ceiling rate discounted

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