What We’re Reading: 340B Contract Pharmacies; Nursing Home Ownership; Health Items in Proposed Budget

Appeals Court Rules Against PhRMA in 340B Contract Pharmacy Dispute

Arkansas can prevent drug manufacturers from limiting the use of 340B drug discounts at certain pharmacies, according to a decision from the 8th US Circuit Court of Appeals, Axios reported. The Pharmaceutical Research and Manufacturers of America (PhRMA), a group that represents the largest drug makers in the US, had challenged an Arkansas law that penalized manufacturers for refusing to sell drugs to contract pharmacies, which provide discounted drugs to hospitals, clinics, and other safety-net facilities under 340B. The decision, which rested on the federal 340B law not specifying how drugs must be delivered by pharmacies to patients, may pave the way for similar laws in other states.

Investor Acquisition of Nonprofit Nursing Homes Sparks Quality Concerns

As more and more for-profit companies, including private equity investors, purchase nonprofit nursing homes, advocates and families are raising concerns about what this change in ownership could mean for the quality of care at these facilities, according to KFF Health News. Tactics by some investors to squeeze profit out of the nursing homes include contracting with a related company for fee-based services or collecting high rent on the facility’s real estate via a sale to a sister company, but these expenses equal fewer dollars to spend on staffing and care. Defenders of the for-profit corporations say all nursing homes are in a precarious situation due to labor shortages and low Medicaid reimbursement, and without for-profit entities stepping in, the facilities would be forced to close altogether.

Biden’s Requested Budget for 2025 Includes Health Care Priorities

President Joe Biden’s requested budget for 2025 is lower than this year’s but includes a number of priorities aligning with his health care agenda on items such as drug costs and access, biosimilars, cancer research, and more, according to Stat. Coming in at $130.7 billion vs 2024’s $144.3 billion, the proposal includes funding for a yet-to-be-created office coordinating the government’s response to drug shortages, as well as funding for the Office of Climate Change and Health Equity, which was established in 2021. The budget also proposes allowing pharmacists to fill prescriptions for reference biologics with biosimilars without needing prescriber approval, effectively discarding the interchangeability designation system.