Influence of the 340B Drug Pricing Program

Bruce Feinberg, DO; Scott Gottlieb, MD; and Ted Okon, MBA, discuss the intentions and overall impact of the 340B Drug Pricing Program on the healthcare industry.

Dr Gottlieb and Mr Okon explain that despite its good intentions, the 340B Drug Pricing Program is leading to consolidation between oncology practices and hospitals.

“A program that was meant to service hospitals that really did have diverse missions and really did service a lot of underprivileged patients has been exploited by hospitals that don’t necessarily have the same mission,” says Dr Gottlieb.

Dr Gottlieb discusses further how hospitals are exploiting the program to generate additional revenue. He also explains that this consolidation is forcing some patients to receive oncology care in a hospital setting, which is not always best. This consolidation drives up healthcare costs and can affect the overall quality of care for patients.

Mr Okon notes that specifically, disproportionate-share hospitals are affecting the success of the 340B Drug Pricing Program, and highlights figures that demonstrate the overall financial impact of this program in the oncology setting.