Hospitals participating in a federal drug discount program were shocked to learn that provisions extending the program to the inpatient setting had been stripped from the latest House health care reform bill – even though the legislation was expected to save taxpayers $1.7 billion.

The Congressional Budget Office concluded recently that the extension of 340B discounts to inpatient drugs would save the federal government that much money over ten years and state Medicaid programs over $1 billion more. The loss to local safety-net hospitals of not including the extension is significant: New York City Health and Hospital System would lose future savings of $25 million annually, Clarian Health Partners in Indiana up to $15 million, and the Henry Ford Health System a projected $6 million annually. Hospitals use the savings to stretch limited resources to provide pharmaceutical services to the uninsured and other vulnerable patient populations.

SNHPA and its allies are working to restore the legislation to the health care reform agenda. It has joined the National Association of Public Hospitals and Health Systems and the National Association of Children’s Hospitals in a letter to House Speaker Nancy Pelosi urging that the 340B inpatient expansion be restored. At the same time, 31 House members have signed onto a letter to Speaker Pelosi, House Majority Leader Steny Hoyer, House Energy and Commerce Committee Chair Henry Waxman, and Rep. John Dingell urging restoration of the 340B inpatient discount provisions.

The omission from the health reform legislation surprised many members of Congress because it was included in the health reform bill that passed the Energy and Commerce Committee this summer. In addition, a stand-alone bill that extends the 340B discount to the inpatient setting enjoys wide bipartisan support in the House of Representatives with close to 100 co-sponsors.

SNHPA and its hospitals anxiously await the Senate merged legislation. The inpatient language was passed by the Senate HELP Committee, but there is no guarantee that the language will remain in the bill voted on by the full Senate. “On behalf of safety net hospitals, we urge the House to restore this important legislation and the Senate to keep their commitment to our most vulnerable patients,” said Ted Slafsky, SNHPA’s Executive Director.

SNHPA is a national association of about 500 hospitals that, based on the high percentage of indigent patients they serve, are qualified to participate in the federal drug discount program administered under Section 340B of the Public Health Service Act.

If you have any questions, please feel free to contact me at the following contact points, or SNHPA Director of Government Affairs, Rob Recklaus, at 202-552-5852 or rob.recklaus@snhpa.org.