Analysis of Outpatient Drug Spending at 340B Hospitals

This report is a detailed analysis of outpatient hospital pharmacy spending at 340B participating hospitals, commissioned by the Pharmaceutical Research and Manufacturers of America (PhRMA). The study builds on previous research and utilizes updated data to compare drug spending among 340B hospitals and non-340B hospitals. Key findings indicate that 340B disproportionate share hospitals consistently incur higher outpatient drug costs across various insurance types, including commercial health insurance and Medicare. The report highlights that the differences in spending cannot be attributed to patient health status or hospital teaching status. It also discusses the unique drug mix at 340B hospitals, which contributes to higher costs. Furthermore, the report notes a significant increase in the cost per outpatient patient over time, emphasizing the financial implications of the 340B program on drug spending. The methodology and assumptions used in the analysis are also outlined, providing context for the findings presented.