GAO Report Examines Characteristics of 340B, Non-340B Hospitals

The Government Accountability Office released a report examining the characteristics of hospitals that participate in the 340B drug savings program and hospitals that do not participate in the program. The report focused on critical access hospitals, sole community hospitals and general acute care hospitals that treat a disproportionate share of low-income patients because these types accounted for more than 95% of hospitals participating in the program in 2016. Among other findings, GAO found that in 2016 “compared with non-340B hospitals, 340B hospitals generally provided similar amounts of charity care and higher amounts of uncompensated care – which typically represent services that hospitals provide to patients who are unable or unwilling to pay for their care, respectively.” The report also found that from 2012 to 2016 disproportionate share hospitals’ participation in the 340B program increased in states that expanded Medicaid under the Affordable Care Act, while 340B participation did not increase for those hospitals in non-expansion states.

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