(May 31, 2024)—Kansas hospitals are essential to the state's health care delivery system. For instance, there were more than 260,843 discharges in the 122 Kansas community hospitals in 2023. Toward that end, Kansas hospitals are committed to providing compassionate health care to all Kansans. While unwavering in that commitment, many stiff headwinds are starting to test the ability to maintain that promise.
It is well documented that Kansas hospitals, especially those in rural areas, are financially struggling. A recent study by the Center for Healthcare Quality and Payment Reform suggests that nearly 700 rural hospitals across the country are at risk of closure. Unfortunately, Kansas ranks second in the country with the number of at-risk hospitals (57), only trailing Texas (77). The causes of the financial struggles are multi-faceted and include soaring labor and supply costs, growing uninsured rates, stagnant reimbursement and reductions in important programs such as the 340B Drug Discount Program.
The 340B Drug Discount Program, started in 1992, requires drug manufacturers participating in the Medicaid program to offer discounted drugs to certain hospitals and federally qualified health centers. In Kansas, 94 hospitals participate in the 340B Drug Discount Program, of which 84 are small, rural hospitals.
Unfortunately, drug manufacturers have recently started decimating the 340B Drug Discount Program by limiting the number of pharmacies a hospital may contract with. These actions are jeopardizing Kansans' ability to access needed prescriptions and other vital health services.
Fortunately, Kansas lawmakers recognized the drug manufacturers' harmful actions and have appropriately responded to ensure the further reduction of the 340B Drug Discount Program is paused. During the recent 2024 Kansas legislative session, the Kansas Legislature approved a budget proviso requiring drug manufacturers to honor 340B pricing at contract pharmacies under the Consumer Protection Act of Kansas.
Kansas hospitals appreciate Governor Laura Kelly's and the legislature's actions in supporting their local hospitals, federally qualified health centers and independent pharmacies over the profit-padding drug manufacturers. Keeping programs like the 340B Drug Discount Program intact will benefit our Kansas health care system and Kansans.
--Chad Austin