Minnesota hospitals participating in a controversial U.S. drug discount program reaped at least $630 million in revenue last year, and the largest institutions were the biggest beneficiaries, according to a report from the Minnesota Department of Health.
Specifically, hospitals received $1.5 billion in discounted medicines under the 340B Drug Discount program, but paid $734 million plus another $120 million to various parties for administration fees. Meanwhile, the largest hospitals received roughly $500 million, representing 80% of the total revenue collected. Yet these institutions accounted for only 13% of the total number of participating hospitals.
The report is the first ever compiled by a state in response to controversy over the 340B program, which was created three decades ago to help hospitals and clinics care for low-income and rural patients. Drug companies that want to participate in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics.
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