Revenue-Sharing or Revenue Lost? The Hidden Costs of 340B to Employers
AUTHORS
James Motyka, PharmD, Jon D. Campbell, PhD, and Kimberly Westrich, MA of the National Pharmaceutical Council and Chuan Sun, MS, MA, Rory Martin, PhD, and Shanyue Zeng, MA of IQVIA
Overview
The financial flow of the 340B program is complex and involves hidden costs. 340B hospitals have proposed sharing 340B revenue with self-funded employers as part of a direct contract. Study authors aimed to quantify the financial impact of this revenue sharing to employers and other healthcare stakeholders and found that 340B discounts conflict with manufacturer rebates, causing hidden revenue loss for employers. Participating in a 340B revenue-sharing agreement may sound enticing, but it is likely to exacerbate revenue loss for employers and other healthcare stakeholders, benefiting only the 340B hospital.
