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340B Public Health Service Act

Section 340B of the Public Health Service Act requires pharmaceutical manufacturers participating in Medicaid to sell certain outpatient medications at discounted prices to healthcare organizations that provide care to many uninsured and low-income patients. Section 340B has provided organizations the financial help needed to continue to serve vulnerable communities for the past 30 years. McDonough District Hospital is eligible to participate in the 340B program because it provides care to a larger population of low-income Medicare and Medicaid patients than some other hospitals.

Fiscal Year 2023

  • $1.3 million: Cost of charity care provided without the expectation of compensation
  • $4.5 million: Cost of uncompensated care
  • 67%: Percentage of patients using Medicare and Medicaid services

MDH participates in the American Hospital Association’s 340B Good Stewardship Principles and has pledged to publish how these savings are being utilized to benefit our community. Savings realized through the program supports MDH’s ability to serve the healthcare needs of the under-insured and uninsured patients in our community, regardless of their ability to pay.

$1.2 million: Benefit generated through 340B participation (FY23)

Benefits of the 340B Program

  • Prescription medication cost assistance for uninsured patients
  • Transportation assistance
  • Clinical pharmacy services
  • Expanding healthcare services in Macomb and surrounding communities

The 340B program has experienced significant challenges in recent years in part due to drug manufacturers severely limiting healthcare organizations ability to fully participate in and serve the intent of the program – to enable organizations caring for vulnerable populations to stretch scarce federal resources as far as possible. Limiting or scaling back the 340B program would threaten the ability of MDH to continue to provide and expand services to our patients.