340B Insight

In this episode of 340B Insight we speak with Chuck Beams, executive director of pharmacy services, business development, and government relations at East Alabama Medical Center (EAMC), about how the 340B program helps EAMC serve its rural community. We also provide 340B news updates regarding the CMS Medicare Part B cuts to 340B hospitals and new 340B research. 

A Diverse Patient Population: EAMC is located in Opelika, Alabama, and serves 11 counties, totaling a population of nearly half a million. Although it is located near Auburn University, it serves many underserved, rural patients who live in nearby communities.

Support Center Amid Natural Disasters: In March 2019, eastern Alabama experienced a devastating tornado that left 23 people dead. In the aftermath, EAMC held the community together with its emergency medical response and social services such as discounted medical bills.

Using 340B Savings to Serve the Underserved: EAMC is one of a dwindling number of hospitals in the area. The 340B program is a key reason why EAMC has survived. Chuck’s team has leveraged 340B savings to provide uncompensated care to uninsured and low-income patients, a meds-to-beds program to ensure patients have the medications they need at discharge,  mobile health services, and access to pharmacists in the emergency department,. 

The Importance of Advocating for 340B: Chuck shares the importance of advocating for the program at both the federal and state levels to ensure policymakers understand the value it brings to patients and the rural hospitals that care for them. 

Check out all of our episodes on the 340B Insight podcast website. You can also stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you’d like us to cover in this podcast, email us at [email protected].

Episode Resources:

1. 340B Health OPPS Resource Center
2. Research Brief: 340B HOSPITALS TREAT A LARGER PERCENTAGE OF CANCER PATIENTS IN UNDERSERVED POPULATIONS
3. Faces of 340B: Chuck Beams 
4. East Alabama Medical Center

In this episode, we speak with Tracy Gilmore, 340B specialist at Labette Health in Parsons, Kansas. Tracy discusses her hospital’s experience responding to COVID-19 in a rural community and highlights the lifesaving impact of 340B on Labette Health and its patients.

A Strong Hospital for the Local Community: Labette County faces numerous challenges, including high poverty rates and childhood hunger. Amid these challenges, Labette Health is a staple of the community providing excellent service for Labette and patients from neighboring counties.

Robust Response and Sacrifices During COVID-19: Labette Health has treated dozens of COVID-19 cases, with some indications at the start of the pandemic that the outbreak could become much more severe. In response, Labette Health obtained extra beds, waived all patient out-of-pocket payments in March, and issued public service announcements on social distancing and hygiene to the local community. 

340B Provides Financial Support: Tracy emphasized that 340B funds have been critical in keeping the hospital financially afloat amid the substantial actions taken in response to COVID-19. As the only source of constant income throughout this pandemic, 340B helped Labette Health to staff additional beds and continue providing excellent care to its patients. 

Strength of the Community: Hospital administrators, doctors, and nurses made incredible sacrifices for the patients and local community that included taking pay cuts, working through high-stress circumstances, and providing extra services directly to the community. The community has taken note. Local citizens recently participated in a socially distant parade to honor health care workers.

Check out all our episodes on the 340B Insight podcast website. You also can stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you’d like us to cover in this podcast, email us at [email protected].

Episode Resources:

1. HRSA Offsite Clinic Eligibility Rule Change 

2. 340B Health COVID-19 Resource Center

3. 340B Health COVID Conversations Webinar

4. 340B Coalition Virtual Summer Conference

5. Labette Health

In this episode, we speak with Mike Bonck, Manager of Pharmaceutical Services for CHI Franciscan Health (CHIFH) in Tacoma, Washington, about the impact of COVID-19 on the US health care system. CHIFH is a system with four DSH hospitals, one rural referral center, and one critical access hospital that participate in the 340B program. 

Tacoma is one of the most significantly affected regions of the U.S., having experienced a major surge of COVID-19 cases in March and April. CHIFH was one of the first hospital systems in the U.S. to face the enormous challenge of responding to COVID-19. Mike offers his perspective on the impact of the novel coronavirus on hospitals, staff, and patients. Some major takeaways include:

Planning, Communication, and Support: Hospitals overwhelmed by COVID-19 face severe equipment and drug shortages. Other major complications include scheduling surgeries and establishing new visitation policies. To address these challenges, hospitals must engage in meticulous planning, system-wide communication, and support for health care employees.

Financial Challenges: COVID-19 has severely threatened the financial health of U.S. hospitals. Federal stimulus money for hospitals through the CARES Act is helping but likely insufficient. As such, it will take a concerted effort to recover from COVID-19, from both a public health and financial health perspective.

Impact of the 340B Program: The 340B program has mitigated CHIFH’s financial challenges, helping the hospital continue to provide critical health services to low-income and underserved patients.

340B Regulatory Flexibility: Policies adopted by the Health Resources & Services Administration to provide greater flexibility to 340B hospitals have helped and should be made permanent.

Long-Term Impact of COVID-19: Innovations such as telemedicine will improve and expand health care in the long term. However, the U.S. health system faces more immediate challenges of caring for the millions of Americans who are newly unemployed and without insurance coverage.

Check out all our episodes on the 340B Insight podcast website. You can also stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you’d like us to cover on our  podcast, email us at [email protected].

Episode Resources:

1. 340B Health COVID-19 Resource Center

2. 340B Health OPPS Resource Center

3. Sen. Ben Sasse’s press release on rural health legislation

4. 340B Coalition Virtual Summer Conference

5. CHI Franciscan

In this episode, we speak with our President and CEO, Maureen Testoni, about the impact of COVID-19 on the 340B program. Maureen has been leading 340B Health since April 2018 and previously served as the Senior Vice President and General Counsel for the organization.

Maureen discusses several key issues for the 340B community amid the uncertainty of the COVID-19 pandemic. Some key discussion topics include: 

1.HRSA’s Response to COVID-19: HRSA has provided flexibility for hospitals on 340B drug purchases, registration of new hospital clinics, and telemedicine. However, there are additional steps HRSA should take to help   hospitals provide continued care for their low-income patients during the pandemic.

2. 340B Health Advocacy: 340B Health is conducting outreach to HRSA, HHS Secretary Alex Azar, and members of Congress about enacting regulatory and legislative flexibility in the  340B program to ensure it is  responsive to a rapidly changing health care environment. 340B Health also created an online COVID-19 Resource Center for its members (see link below).

3. CMS Survey: CMS is surveying many 340B hospitals related to their drug acquisition costs. This survey is part of the agency’s effort to cut Medicare Part B payments to most 340B hospitals.  

4. Medicaid Cuts: 340B is closely following legislative proposals in Congress that would reduce Medicaid reimbursements to 340B hospitals.

5. Health System Trends: Maureen highlights recent trends in the health care world that affect 340B, such as transitions to outpatient care and the emergence of new drugs that replace invasive procedures.

Check out all of our episodes on the 340B Insight podcast website. You can also stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you’d like us to cover in the podcast, email us at [email protected].

Episode Resources:

1.     340B Health COVID-19 Resource Center 

2.     340B Health OPPS Resource Center

3.     340B Health’s Statement Regarding Bipartisan Efforts to Protect 340B Hospitals During COVID-19 (May 8, 2020)

4.     340B Health’s Statement Regarding Federal Flexibility for Hospitals Amid COVID-19 Response (March 20, 2020)

5.     340B Health’s Statement Regarding White House Approval of 340B Medicare Drug Cost Survey (April 24, 2020)

340B Insight is a podcast hosted by 340B Health that provides its members and supporters with timely news updates and discussion around the 340B drug pricing program. 

 
This inaugural episode includes news updates on the Centers for Medicare and Medicaid Services going ahead with a controversial survey of 340B hospitals, and lawmakers on Capitol Hill asking congressional leaders to protect 340B during the COVID-19 pandemic. 

In the feature interview for this episode, the President and CEO of 340B Health, Maureen Testoni, speaks with Rear Admiral Krista M. Pedley, the Director of the Office of Pharmacy Affairs (OPA) in the Health Resources & Services Administration (HRSA). OPA administers the 340B drug pricing program, which requires drug manufacturers to provide outpatient drugs to eligible safety-net providers at reduced prices.

During the interview, Rear Admiral Pedley offers numerous insights into critical 340B issues, including:

1. HRSA Provides Flexibility During the COVID-19 Pandemic: HRSA is offering certain flexibilities for covered entities to ensure that they can remain focused on patient care during the pandemic. For example, it will conduct remote 340B audits for the next several months.
2.  HRSA Has Limited Enforcement Powers During Audits: HRSA can only enforce 340B guidance if it discovers a clear and direct violation of the 340B statute. As such, HRSA states that it has limited capacity to broadly enforce 340B guidance.
3. The New 340B Ceiling Price Website Improves Transparency: Last year, HRSA launched the new 340B ceiling price website, which has improved transparency and communications with external stakeholders in relation to price reporting and price comparisons.
4. Eligible 340B Participants Must Continue to Document and Track Activities: Rear Admiral Pedley urges all 340B participants to document how they follow HRSA guidance in their policies and procedures and to keep auditable records of what makes them eligible to participate. It is also critical that 340B participants have a system in place to track every purchase of a 340B drug to an eligible patient.
5. HRSA Finds Common Ground Between All Stakeholders: Rear Admiral Pedley highlights her role in listening to all sides of the 340B ecosystem to help find common ground and a sustainable path forward on reduced drug pricing.

340B Health expresses our gratitude to Rear Admiral Pedley for more than 10 years of dedication to the 340B program. Under her leadership, the 340B program continues to improve in its role as a vital health care safety net to patients in the U.S.

Check out all of our episodes on the 340B Insight podcast website. You can also stay updated on all 340B Health news and information by visiting our homepage.

Episode Resources:

HRSA OPA website

340B Health COVID-19 Resource Center

340B Health OPPS Resource Center

340B Health press release on Reps. Matsui-Stewart letter

Maureen Testoni op-ed about the 340B ceiling price website

Rear Admiral Krista Pedley’s Bio 

Rear Admiral Krista M. Pedley is the Director of the Office of Pharmacy Affairs (OPA) in the Healthcare System Bureau, Health Resources & Services Administration (HRSA). Her office administers the 340B drug pricing program, through which more than 700 drug manufacturers provide discounted outpatient drugs to more than 46,700 hospitals and clinics, and more than 24,500 pharmacies purchase more than $24 billion in 340B drugs annually. The 340B program spans HHS and focuses on drug pricing transparency and reducing the cost of medications for the country’s most vulnerable safety-net patient populations. 

RADM Pedley began her career as a pharmacist with the United States Public Health Service in May 2000. She was assigned to the Food and Drug Administration, Office of Generic Drugs, as a Project Manager for Bioequivalence and then as Medical Affairs Coordinator reviewing topical drug protocol design. After five years, RADM Pedley transferred to HRSA and then the Office of the Secretary of Health and Human Services, where she served as Senior Public Health Analyst for the National Bioterrorism Hospital Preparedness Program (NBHPP). In 2007, RADM Pedley began working with OPA, where she led a national collaborative that focused on integrating clinical pharmacy services into primary care to improve the health of patients with multiple chronic conditions. She then became the Director of OPA in July 2010 and was promoted to Rear Admiral and Assistant Surgeon General in February 2020. 

RADM Pedley received her Doctor of Pharmacy degree at the University of Pittsburgh in 2000 and her Master of Science in Engineering Management and Systems Engineering, with a Concentration in Crisis, Emergency and Risk Management, from The George Washington University in 2008. She is also a 2011 graduate of the Public Health Leadership Institute (PHLI) Scholar Program.

RADM Pedley has participated in numerous deployments, including Hurricanes Frances, Ivan, Isabel, and Katrina as well as the Presidential Inauguration in 2005. RADM Pedley was also a contributor on the Report to the Surgeon General on Clinical Pharmacy and co-author on PHS Pharmacy Prevention Strategy.

RADM Pedley is the recipient of numerous awards, including an Exceptional Promotion to Captain in 2015, the Meritorious Service Medal in 2018, the PHS Commendation Medal in 2012, 2009, 2005, and the APhA Foundation Pinnacle Award in 2016 and 2011.

Welcome to 340B Insight! Hosted by 340B Health, the nation’s leading advocate for hospitals participating in the 340B drug pricing program. 340B Insight features the latest news, expert interviews, and answers to your questions. Learn about the ways 340B hospitals use program savings, demonstrate patient health improvements, respond to public health emergencies, and more.