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340B in Action

The 340B prescription drug program is a vital lifeline for safety-net providers, supporting critical health services in our communities. The program is narrowly tailored to reach only hospitals that provide a high level of services to low-income individuals or that serve isolated rural communities. Savings from the 340B program help hospitals meet the healthcare needs of underserved patients across the country. Congress should preserve and protect the 340B program as an essential part of the safety-net that does not rely on taxpayer dollars.

340B Impact at HSHS Good Shepherd Hospital

As a safety net hospital, Good Shepherd Hospital provides health care for individuals regardless of their insurance status or ability to pay. Safety net hospitals serve a higher number of uninsured, Medicaid, Medicare, Children's Health Insurance Program (CHIP), low-income, and other vulnerable populations than their non-safety net hospital counterparts. Good Shepherd Hospital is also a critical access hospital, a federal designation created to help reduce the financial vulnerability of small rural hospitals located more than 35 miles from another hospital.

In FY2018, Good Shepherd Hospital realized $120,000 in savings through the 340B prescription drug program, which was primarily used to provide financial assistance, offset costs of community outreach programs, and expand services to improve patient care.

Good Shepherd Hospital is committed to providing medically necessary care by offering financial assistance for co-pays, deductibles, or medical services for low-income individuals who qualify, which totaled $358,000 in FY2018. The hospital provided community benefit health improvement services for the broader community totaling $21,000 in FY2018. Services included: free community health outreach, free health fairs and screenings, and community gardens to provide food-insecure persons with fresh produce.

340B numbers for FY2018

  • $120,000: Approximate 340B savings last year
  • $358,000: Financial assistance (charity care) at cost
  • $420,000: Amount spent on drugs annually
  • $1.1 million: Unpaid cost of Medicaid and other public programs
  • $21,000: Community benefit health improvement services for the broader community.