Danea Horn, a researcher at the University of California, San Francisco, has indicated that there is increasing evidence suggesting covered entities have adjusted their behavior to align with the profit incentives of the 340B Drug Pricing Program. This statement was made in a publication on ScienceDirect.
"There is increasing evidence that covered entities have adjusted their behavior in ways that align with the profit incentives of the 340B program," said Horn.
According to a study published in the American Journal of Health-System Pharmacy, the 340B Drug Pricing Program mandates pharmaceutical manufacturers to sell outpatient drugs at reduced prices to eligible healthcare organizations. The program was initially designed to assist healthcare facilities serving vulnerable populations by allowing them to extend limited federal resources. However, its expansion has raised concerns that some covered entities may be prioritizing financial gains over patient care.
The 340B program has been linked with increased financial incentives for participating hospitals, as they can purchase discounted drugs and bill insurers at standard rates. A study published in The American Journal of Managed Care suggests this practice may lead hospitals to prioritize financial benefits rather than directly enhancing care for underserved populations. This dynamic has sparked ongoing discussions about the program’s impact on healthcare affordability.
According to JAMA Health Forum, hospitals involved in the 340B program have shown a tendency to acquire independent physician practices, resulting in more hospital-based outpatient care. This trend has raised concerns about potential cost increases and shifts in care delivery. Stakeholders continue to debate the implications of this pattern for patient care and healthcare costs.
Horn is a researcher at the Center for Translational and Policy Research on Precision Medicine (TRANSPERS) at the University of California, San Francisco. She earned her PhD from the University of California, Davis, and was a postdoctoral scholar at Stanford University, focusing on health policy and innovation. In 2013, she authored "Chronic Resilience," which explored patient experiences with the healthcare system.
