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Proposed Changes to 340B Program Would Hurt Nonprofit Hospital Margins, Moody’s Says

(COA) Oct 4, 2017 - Hospitals will continue to pay more for inpatient drugs, though Moody’s predicts the pace will moderate due to pharmaceutical scrutiny.

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Thomas Marsland, MD (Posted: October 04, 2017)

quotesSo clearly less is less..... but less for some maybe more for others. The hospitals have used the 340B program to expand their control of cancer care for years. In the Xcenda report discussed in prior OBR daily's it is noted that 75% of the hospital acquired practices come from those with 340B status. So much for that margin providing indigent care... That report also discusses how hospital centered care costs 60% more than the same care delivered in a private practice setting. This amounts to $90,000 a year more per patient. That report also describes a much greater ER and hospitalization rate by hospital based practice. Community physicians have been under the gun with falling reimbursement for years and that has led to improved quality and efficiency's such as the Come Home Oncology Medical home. Another interesting comment in Moody report points out that patients actually will save $180 million dollars a year. It makes no sense to continue to subsidize hospital programs that result in greater cost of care. Hospitals need to learn to reduce their costs as the doctors in private practice learned to do. The 340B program is broken and abused by hospitals to sustain their margins and inefficiency. The playing field needs to be equalized. quotes

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