In the latest effort to curtail the controversial 340B Drug Pricing Program, a coalition of drugmakers, biotechs and pharmacy benefit managers have released a scathing report that criticizes government oversight, warns against skyrocketing growth in the number of participating hospitals and complains that lucrative pricing discounts are being unfairly exploited by both hospitals and some physician practices.

“Without concerted efforts to achieve program integrity, the potential for continued program misuse is high,” the report states. “Lack of appropriate oversight and the absence of rules consistent with Congressional intent, along with the explosive growth of the 340B program, highlight the need for program reform.” The key to understanding this language is that the discounts anger the manufacturers.

Just the same, the missive comes two years after the US Government Accountability Office released a report saying the Health Resources and Services Administration Agency oversight is inadequate to ensure that participating hospitals use drugs purchased under the 340B program are administered only to eligible patients, and that drugs are sold to eligible hospitals and clinics at or below stipulated prices.

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