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For this episode of 340B Insight we speak with Alan Morgan, CEO of the National Rural Health Association. Alan previews National Rural Health Day on November 19, discusses how rural hospitals are faring during the COVID-19 pandemic, the future of rural hospitals, the role of 340B to help hospitals stay afloat, and why drug manufacturers attacks on contract pharmacies are detrimental to rural hospitals and their patients. In our news segment prior to the interview, we recap how Novartis has become the fourth drug manufacturer to block 340B discounts when drugs are dispensed at some contract pharmacies. We also celebrate the 340B program’s anniversary. 

National Rural Health Day National Rural Health Day is November 19. On this day, the rural health community comes together to celebrate the importance of rural health. It is a great reminder of what’s working in health care for these communities. NRHA asks folks to promote the positive stories on social media and other digital platforms.

340B Keeps Rural Hospitals Afloat With 48% of rural hospitals operating at a loss back in the first week of April, many of these health care providers were struggling to stay afloat. Recent research from 340B Health found that more than 75% of rural hospitals depend on 340B savings to keep their doors open. 

Rural Hospitals During the Pandemic A rise in COVID-19 cases has forced hospitals to stop scheduling elective and other non-emergency procedures, which account for 70-75% of revenue for rural hospitals. As a result, many of these facilities do not have the capacity or resources to manage the new surge of cases sweeping the nation. However, these hospitals have responded by collaborating and networking with peer hospitals to share supplies and efficiently transfer patients to facilities with additional resources.

Innovations That Have Helped Rural Hospitals Alan touches on the benefits and advances in telehealth, which have been critical and will continue even after the pandemic ends. He discusses the positive effects of rural hospitals and their CEOs reaching out to and communicating with their communities about the pandemic and public health.

Drug Manufacturers’ Attacks on Contract Pharmacies Affect Rural Hospitals and their Patients Drug manufacturers are refusing to provide discounts to 340B hospitals when drugs are dispensed at contract pharmacies. Alan says this is terrible for rural hospitals and their patients. In many communities, rural patients rely on contract pharmacies to receive their medications and other pharmacy services. The drug manufacturers’ actions put this at risk as well as the ability for rural hospitals to access their 340B savings. As a result of the pandemic, many people are moving to more rural areas and need access to care in these communities. This is why NRHA is advocating for rural hospitals to provide outpatient services, keep open a 24/7 emergency department, and use telehealth, while eliminating the requirement for inpatient beds. 

Episode Resources: 

1.340B Health Statement Regarding Novartis Cutting Off Access to 340B Pricing Through Community-based Pharmacies  

2. Letter to HHS Secretary Alex Azar from More than 60 Advocacy Organizations for Patients and Social Justice

3. 340B Health President and CEO Maureen Testoni’s 340B Anniversary Video Message  

4. National Rural Health Day 

5. 340B Health Webinar: What the 2020 Election Means for 340B