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Creating a medical home through the 340B Drug Pricing Program.
Inginia Genao1, Karrie Hendrickson, Donna Diers
1Yale University School of Medicine, USA. inginia.genao@yale.edu
Connecticut Medicine
|December 31, 2010
Summary
The 340B Drug Pricing Program increased outpatient visits and decreased inpatient use, generating significant cost savings. This policy may improve care for underserved populations by creating a medical home.
Area of Science:
- Health Services Research
- Health Economics
- Public Health Policy
Background:
- The 340B Drug Pricing Program aims to reduce drug costs for eligible healthcare organizations serving vulnerable populations.
- Understanding the impact of the 340B program on healthcare utilization and costs is crucial for policy evaluation.
Purpose of the Study:
- To evaluate the effects of the 340B Drug Pricing Program on inpatient and outpatient healthcare utilization.
- To assess the financial impact, including direct costs and savings, associated with the program's implementation.
Main Methods:
- A before-and-after study design was employed.
- Administrative, clinical, and financial data were utilized for analysis.
Main Results:
- Outpatient and emergency department utilization rates saw a slight increase in direct costs.
- Inpatient utilization decreased, while the length of inpatient stay increased, resulting in over $3 million in direct cost savings.
Conclusions:
- The 340B program may facilitate the creation of a "medical home" by improving care continuity for patients lacking a usual source of care.
- The 340B program shows potential as a policy tool to enhance care for the underserved, simultaneously boosting outpatient use and reducing inpatient utilization and associated costs.
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