Hospitals hope litigation will stop the 340B rebate model before it gets started
Hospitals are going to court in an effort to thwart major changes to the 340B Drug Pricing Program. The American Hospital Association (AHA) was among a group that filed a lawsuit against the federal government Dec. 1, seeking to have implementation of a planned 340B rebate model halted before it begins Jan. 1. Under the…
340B rebate model is set to proceed in 2026 with 9 drugs
A new chapter for the 340B Drug Pricing Program will begin Jan. 1 after the Health Resources and Services Administration (HRSA) formally authorized a rebate model last week. For 2026, eight approved manufacturers can provide rebates rather than upfront discounts to 340B participating providers dispensing nine drugs: The list of drugs for the rebate model…
OIG report could lead to additional inspection of hospitals’ Provider Relief Fund usage
Some hospitals that received funding support from HHS during the COVID-19 pandemic may need to prepare for additional auditing based on findings of a report by the department’s Office of Inspector General (OIG). The report examined a small sampling of Provider Relief Fund (PRF) recipients and found that 17 of 25 hospitals did not comply…
Hospital financial metrics remain steady even as costs rise and reimbursement challenges await
The latest data on financials for the not-for-profit (NFP) hospital sector hints at the challenges in store. While margins have not taken a significant hit for health systems, other metrics reflect rising costs, according to the latest monthly report from Strata Decision Technology. Beyond that immediate concern is the prospect of reduced reimbursement not only…
Proposed 340B rebate model generates an array of concerns among providers
Hospital advocates are pushing back on a fast-approaching rebate model for the 340B Drug Pricing Program, while a new Congressional Budget Office (CBO) report illustrates the accelerating spending in the program. The Health Resources and Services Administration (HRSA), which administers 340B, previously announced that a pilot program to test the application of a rebate model…
The hospital tax exemption comes under scrutiny in Congress
At a time when concerns over reimbursement and costs already are intensifying, Congress recently held a hearing to discuss policy changes that could exert further pressure on the not-for-profit (NFP) hospital sector. A subcommittee of the House Ways and Means Committee met Sept. 16 to examine the NFP hospital tax exemption, soliciting proposals that could…
Ahead of expected turmoil, the hospital sector is on solid footing
With uncertainty on the horizon for healthcare operations, hospitals and health systems appear to have established a stable foundation from which to respond to challenges. Recently reported financial data offers further indication that the not-for-profit (NFP) hospital sector has attained a measure of equilibrium several years after the pandemic and the ensuing turbulence in labor…
340B rebate models arrive in the form of a new pilot program
Federal healthcare officials took a step last week toward permitting rebate models in the 340B Drug Pricing Program, launching a pilot to allow for the testing of such models. The idea was proposed over the past year by drug manufacturers looking to rein in what they say are excesses of the 340B program. Rather than…
Community benefit, 340B and Medicare Advantage: Top financial reporting challenges
Nonprofit hospitals are facing scrutiny over their community benefit reporting, the 340B Drug Pricing Program is under threat, and there is a need for greater transparency in Medicare Advantage and Medicaid managed care plans.
New taxes to hit hospitals as a result of the budget reconciliation bill (updated)
This article has been updated July 8 as noted to reflect changes made to the bill between the version passed by the House and the final legislation. As congressional Republicans continue their discussions on the budget reconciliation bill, not-for-profit (NFP) hospital leaders should be aware of items that have gotten less attention than the retrenchment…