Pharmaceutical Executive November 28, 2023
For manufacturers who participate in the 340B program, costs have increased because they are required to provide steep discounts on their drugs at levels far below private market prices.
In 1992, the 340B Drug Pricing Program was created with the goal of being able to incentivize safety net hospitals and clinics that support the low-income and underserved populations by discounting outpatient drug costs.1,2 By being able to dispense discounted drugs, these facilities are able to directly impact more patients, in the form of additional health care services and programs.
In a review of the 340B program conducted by the JAMA Health Forum, the program was associated with financial benefits for hospitals, clinics, and pharmacies; greater access to health care services...