Author Interviews, Cost of Health Care, JAMA / 01.11.2019
Safety Net Hospital Earn Modest Profit from Medicare’s Discount Drug Program
MedicalResearch.com Interview with:
Rena M. Conti, PhD, Associate Professor
Department of Markets, Public Policy and Law
Questrom School of Business
Boston University Boston, MA 02215
Co-Authors:
Sayeh S. Nikpay, PhD
Melinda B. Buntin, PhD
Vanderbilt University School of Medicine
MedicalResearch.com: What is the background for this study?
Response: The federal 340B program provides deep discounts on the acquisition cost of prescription drugs for participating hospitals and places no limits on what hospitals charge patients and insurers. Congress intended 340B profits generated from hospital participation to subsidize the provision of safety net care for patients residing in the community.
This study is the first to estimate the size of profits hospitals participating in the 340B drug discount program collect from Medicare patients for the outpatient clinic administration of prescription drugs. (more…)