Advocacy Alert

Urge Your Lawmakers to Support Essential Health System Designation

Statement on Proposed Remedy for Unlawful Cuts to 340B Hospitals

July 7, 2023


Statement attributable to:
Bruce Siegel, MD, MPH
President and CEO
America’s Essential Hospitals

WASHINGTON — We are pleased the administration proposes lump-sum reimbursements to hospitals in the 340B Drug Pricing Program to remedy years of unlawful cuts to Medicare outpatient drug payments.

Essential hospitals still face heavy financial pressures from high labor costs and other challenges from the pandemic, and these payments are urgently needed to help these hospitals meet the needs of their patients and communities. We urge the Centers for Medicare & Medicaid Services to expedite the release of the reimbursements.

We are disappointed the remedy payments would include no interest and be budget neutral. The administration’s plan to cut non–drug payments to hospitals to achieve budget neutrality unnecessarily blunts the impact of the remedy by ensuring years of future underpayments.

The proposed remedy is a positive step to compensate hospitals for the difference between the cuts and what they would have received otherwise. We urge CMS to reconsider its proposed budget neutrality policy and make the remedy payments as soon as possible.

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About America’s Essential Hospitals
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to equitable, high-quality care for all, including those who face social and financial barriers to care. Since 1981, America’s Essential Hospitals has advanced policies and programs that promote health, health care access, and equity. We support our more than 300 members with advocacy, policy development, research, education, and leadership development. Communities depend on essential hospitals for care across the continuum, health care workforce training, research, public health and health equity, and other services. Essential hospitals innovate and adapt to lead all of health care toward better outcomes and value.

Carl Graziano

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