A change to a federal drug discount policy that provides lower-cost prescription medications to clinics and hospitals serving low-income and other disadvantaged communities could bankrupt rural hospitals, a new study finds.

The report, from 340B Health, claims that changes proposed by major drugmakers to replace upfront discounts with post-sale rebates for some or all outpatient drugs would hit safety-net hospitals with significant additional costs.

“These 340B rebate models would shift financial burden from highly profitable drug companies to hospitals with the fewest resources serving the most vulnerable patients,” said 340B Health President and CEO Maureen Testoni. “This is not reform; it’s a recipe for hospital closures, service cuts, and patients losing access to life-saving medicat

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