Illinois is facing an intense battle over a federal program requiring drug manufacturers to sell deeply discounted medications to safety-net hospitals and clinics.
Hospital systems relying on the 340B Drug Pricing Program are calling for reforms and increased funding, while opponents argue it has been exploited for corporate profit.
Christina Carney, CEO of Shawnee Health, said restrictions implemented over time by drugmakers are hindering access to some medications. She stressed that funding limitations also prevent organizations like hers from providing critical care to at-risk populations and disproportionately affect rural communities.
"The money that we have benefited from previously, from those 340B savings, being around $4 million a year," Carney reported. "We're now operating at a loss of about $1.2 million a year."
Proposed state legislation seeks to block drugmakers from enforcing certain restrictions and aims to protect access to discounted drugs. Opponents argued that the program no longer serves its original intent of helping vulnerable patients and only helps hospitals generate profit.
Savings from the program are supposed to be reinvested into care for low-income and uninsured patients.
Randall White, pastor of First Baptist Church of Park Forest, is concerned that it has not been happening.
"It’s supposed to hit the hands of those that need the money the most, those that can't afford medicines, those that can't afford certain treatments," White outlined. "But we believe that it's not getting into the hands of those that need it the most. It was not designed to fatten the pockets of the CEOs of the hospitals."
White added that community leaders are calling for increased transparency and accountability to ensure proper implementation of the program. Other proposed bills in the Illinois Legislature aim to require hospitals to report how they use 340B savings or mandate a portion of the funds be used to lower out-of-pocket costs for low-income patients.
Illinois News Connection originally published this story.
