Drug discount program sparks more debate between hospitals and critics in the USA

Debate in the USA has flared again over how hospitals are using a discount prescription drug program. Claims have arisen that profitable hospital chains are taking advantage of the discounts offered, at the expense of federal programs such as Medicare and Medicaid, as well as private health care insurers.

The 340B program was introduced 20 years ago by President George Bush to allow hospitals which treat a disproportionate number of poor and uninsured patients discounts of up to 50% on vital drugs. Since then, Congress has voted to expand the program to rural, children’s and certain cancer hospitals which treat high numbers of poor patients.

Yesterday the Safety Net Hospitals for Pharmaceutical Access (SNHPA), an association of nearly 1,000 hospitals which works to increase the affordability and accessibility of pharmaceutical care, issued a new report on the issue to address criticism of the program.