Government Healthcare Policy, Business and Technology

Influential advisory panel asks CMS to reject $1.65 billion cuts to 340B

Modern Healthcare: A panel that advises HHS on outpatient hospital payments wants the CMS to drop a draft rule that could cut up to $1.65 billion out of the 340B discount drug program.On Monday, the Advisory Panel on Hospital Outpatient Payment asked the CMS to rescind its proposal to pay hospitals 22.5% less than the average sales price for drugs acquired under the program. 340B aims to reduce operating costs for hospitals that see a disproportionate share of low income patients.The outpatient payment panel was created by a federal law that dictates HHS must assess how policies affect hospitals. The panel, made up of industry leaders, has proved influential. In 2013, the CMS took its advice to reduce the required level of physician supervision for some procedures.

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