New 340B Stewardship Principles Aim to Increase Transparency, Strengthen Program

The American Hospital Association (AHA) and individual hospitals have initiated new principles for ensuring good stewardship of the 340B drug program. The goals are to ensure that the 340B program increases transparency, and assists participating hospitals in better communicating the program’s value for vulnerable patients and communities.

“The 340B stewardship principles will help hospitals better tell their story of how this crucial program is delivering a variety of important benefits to patients and communities,” said Rick Pollack, president and CEO of the AHA, in a prepared statement.

“In an era of skyrocketing drug prices, 340B has been critical in helping hospitals expand access to comprehensive health services, including lifesaving prescription drugs.”

According to the AHA, these new principles serve as the foundation for every 340B hospital’s good stewardship of the program:

• Communicate the Value of the 340B Program:The hospital commits to preparing and publishing a narrative, on an annual basis, that describes how it uses 340B savings to benefit the community. The narrative would address those programs and services funded, in whole or in part, by 340B savings, including those services that support community access to care that the hospital could not continue without 340B savings. Examples of such programs and services will be particular for each hospital and could include programs that expand access to drugs for vulnerable populations, as well as a wide range of other services, such as preventive care, emergency services, cancer treatment, vaccinations, home-based care, and mental and behavioral health services.
• Disclose Hospital’s 340B Estimated Savings:The hospital commits to publicly disclosing, on an annual basis, its 340B estimated savings calculated using a standardized method. That method would compare the 340B acquisition price to group purchasing organization (GPO) pricing. If GPO pricing is not available for a 340B drug, the 340B acquisition price for a drug would be compared to another acceptable pricing source. To provide context for the estimated savings, hospitals could compare their 340B estimated savings to the hospitals’ total drug expenditures, as well as provide examples of their top 340B drugs.
• Continue Rigorous Internal Oversight.The hospital commits to continuing to conduct internal reviews to ensure that the hospital’s 340B program meets Health Resurces and Services Administration program rules and guidance. Included in this effort is a commitment to regular and periodic training for their interdisciplinary 340B teams that encompasses C-suite executives, pharmacy, legal, and financial assistance, as well as community outreach and government relations staff if applicable.

Click to continue reading on Pharmacy Times.