New Government Report Finds 340B Hospitals Increase the Cost of Cancer Care

The Government Accountability Office (GAO) issued a new report stating that action is needed to reduce the financial incentives that 340B hospitals have to use more drugs and more expensive drugs. According to the report, "GAO found that in both 2008 and 2012, per beneficiary Medicare Part B drug spending, including oncology drug spending, was substantially higher at 340B DSH hospitals than at non-340B hospitals. This indicates that, on average, beneficiaries at 340B DSH hospitals were either prescribed more drugs or more expensive drugs than beneficiaries at the other hospitals in GAO’s analysis."

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