Commit to AHA’s 340B Good Stewardship Principles

Texas hospitals that are members of the American Hospital Association are encouraged to commit to AHA’s Good Stewardship Principles related to the 340B Drug Pricing Program. Demonstrating this commitment means sharing publicly how 340B hospitals reinvest savings to benefit the community by providing more comprehensive services for eligible patients. Hospitals participating in the program also should structure their policies and procedures to support the Good Stewardship Principles. Commit to 340B Good Stewardship Principles by submitting AHA’s commitment form. Additional details, including the call to action, list of principles and a tool to calculate 340B savings are available to AHA members from AHA’s 340B Web page.

Through the 340B program, pharmaceutical manufacturers sell drugs used in eligible safety net hospitals’ outpatient settings at discounted prices. Participating entities can achieve savings of 25 to 50 percent on pharmaceutical purchases. Hospitals reinvest 340B savings for a wide range of purposes, including providing low-cost or free prescriptions for uninsured and low-income populations, expanding services offered to patients and providing services to more patients. The 340B program involves no federal spending. Currently, one in four Texas hospitals participate in the program.

In November 2017, the Centers for Medicare & Medicaid Services finalized a rule to limit hospitals’ Medicare reimbursement for prescription drugs purchased under the 340B Drug Discount Program. Beginning Jan. 1, 2018, 340B-participating hospitals face an almost 30 percent reduction in Medicare reimbursements for these drugs, which significantly reduce hospitals’ ability to sustain necessary patient programs. The financial impact to Texas hospitals is estimated to be a loss of nearly $41 million in 2018.

THA is seeking stories and feedback about the positive impact and opportunities the program affords to Texas hospitals and health systems. Contact Stephanie Limb for additional information.

Texas Hospitals Reinvest 340B Savings in Improving Access to Care

Read how hospitals in Texas' 36 Congressional districts invest 340B savings.

Rep. Ted Poe (TX-2)
Rep. Joe Barton (TX-6)
Rep. John Culberson (TX-7)
Rep. Kevin Brady (TX-8)
Rep. Al Green (TX-9)
Rep. Michael McCaul (TX-10)
Rep. Kay Granger (TX-12)
Rep. Mac Thornberry (TX-13)
Rep. Sheila Jackson Lee (TX-18)
Rep. Pete Olson (TX-22)
Rep. Kenny Marchant (TX-24)
Rep. Roger Williams (TX-25)
Rep. Michael Burgess (TX-26)
Rep. Gene Green (TX-29)
Rep. Marc Veasey (TX-33)
Rep. Brian Babin (TX-36)


Stephanie Limb, vice president, advocacy communications, 512/465-1557

THA Takeaways

THA Takeaways: Texas Hospitals Reinvest 340B Savings to Increase Access to Care