Assessing the Impact of the 340B Drug Pricing Program: A Scoping Review of the Empirical, Peer‐Reviewed Literature

Author:

LEVENGOOD TIMOTHY W.1ORCID,CONTI RENA M.2,CAHILL SEAN134,COLE MEGAN B.1

Affiliation:

1. Boston University School of Public Health

2. Boston University Questrom School of Business

3. The Fenway Institute

4. Northeastern University

Abstract

Policy Points The 340B Drug Pricing Program accounts for roughly 1 out of every 100 dollars spent in the $4.3 trillion US health care industry. Decisions affecting the program will have wide‐ranging consequences throughout the US safety net. Our scoping review provides a roadmap of the questions being asked about the 340B program and an initial synthesis of the answers. The highest‐quality evidence indicates that nonprofit, disproportionate share hospitals may be using the 340B program in margin‐motivated ways, with inconsistent evidence for increased safety net engagement; however, this finding is not consistent across other hospital types and public health clinics, which face different incentive structures and reporting requirements. ContextDespite remarkable growth and relevance of the 340B Drug Pricing Program to current health care practice and policy debate, academic literature examining 340B has lagged. The objectives of this scoping review were to summarize i) common research questions published about 340B, ii) what is empirically known about 340B and its implications, and iii) remaining knowledge gaps, all organized in a way that is informative to practitioners, researchers, and decision makers.MethodsWe conducted a scoping review of the peer‐reviewed, empirical 340B literature (database inception to March 2023). We categorized studies by suitability of their design for internal validity, type of covered entity studied, and motivation‐by‐scope category.FindingsThe final yield included 44 peer‐reviewed, empirical studies published between 2003 and 2023. We identified 15 frequently asked research questions in the literature, across 6 categories of inquiry—motivation (margin or mission) and scope (external, covered entity, and care delivery interface). Literature with greatest internal validity leaned toward evidence of margin‐motivated behavior at the external environment and covered entity levels, with inconsistent findings supporting mission‐motivated behavior at these levels; this was particularly the case among participating disproportionate share hospitals (DSHs). However, included case studies were unanimous in demonstrating positive effects of the 340B program for carrying out a provider's safety net mission.ConclusionsIn our scoping review of the 340B program, the highest‐quality evidence indicates nonprofit, DSHs may be using the 340B program in margin‐motivated ways, with inconsistent evidence for increased safety net engagement; however, this finding is not consistent across other hospital types and public health clinics, which face different incentive structures and reporting requirements. Future studies should examine heterogeneity by covered entity types (i.e., hospitals vs. public health clinics), characteristics, and time period of 340B enrollment. Our findings provide additional context to current health policy discussion regarding the 340B program.

Funder

Agency for Healthcare Research and Quality

Publisher

Wiley

Reference96 articles.

1. Health Resources and Services Administration.340B Drug Pricing Program. Health and Human Services. Updated December 2023. Accessed August 21 2020.https://www.hrsa.gov/opa/index.html

2. GerhardtW AroraA.Hospital revenue trends: outpatient home virtual and other care settings are becoming more common.Deloitte Insights. February 21 2020. Accessed May 26 2021.https://www2.deloitte.com/us/en/insights/industry/health‐care/outpatient‐virtual‐health‐care‐trends.html

3. CunninghamP FellandL.Environmental scan to identify the major research questions and metrics for monitoring the effects of the Affordable Care Act on safety net hospitals. Office of the Assistant Secretary for Planning and Evaluation. US Department of Health and Human Services;2013.

4. Government Accountability Office.Drug discount program: federal oversight of compliance at 340B contract pharmacies needs improvement. Government Accountability Office;2018.

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