America’s Essential Hospitals Provides Feedback on SUSTAIN 340B Act

America's Essential Hospitals on Sept. 30 submitted comments to the Senate 340B Working Group on the Supporting Underserved and Strengthening Transparency, Accountability, and Integrity Now and for the Future of 340B (SUSTAIN 340B) Act. The association highlighted provisions that would strengthen the 340B Drug Pricing Program while urging changes to provisions that would harm the very covered entities the program originally intended to support.

The association supports several components of the legislation, including a reiteration of the original intent for 340B discounts to be provided at the point of purchase, as opposed to back-end rebates. Additionally, the association appreciated the explicit exclusion of any geographic or numeric limit on contract pharmacies.

At the same time, the association raised significant concerns that certain provisions could inadvertently restrict access to care, particularly the proposed changes to the definition of a 340B patient, child site eligibility, reporting requirements, and audit and enforcement policies. The association urged Congress to ensure that new transparency and program integrity requirements do not impose unnecessary burdens on essential hospitals or limit their ability to serve vulnerable communities.

America's Essential Hospitals also called for a proportionate, risk-based approach to program oversight; greater flexibility for hospitals to maintain contract pharmacy and child site arrangements that support patient access; and transparency requirements that apply meaningfully across all 340B program participants. The association further urged Congress to preserve flexibility in how essential hospitals identify and support patients and avoid duplicative reporting requirements. Finally, the association urged Congress to provide adequate federal funding for the Health Resources and Services Administration's management and oversight of the 340B program rather than relying on a mandatory user fee on the already-stretched covered entities.

Contact Junior Manager of Legislative Affairs Julia Cecil at [email protected] with questions.