Stewardship of the 340B Drug Pricing Program

340B: Our Numbers[1]

$85.5 million: Amount of savings realized from the 340B program in fiscal year (FY2020)

$48.3 million: Amount provided as charity care, in-kind health services, health education training, community benefit operations, and grants and in-kind donations to support community health (FY2020)

$24.9 million: Unpaid costs of Medi-Cal and other means-tested government programs (FY2020)

$103.2 million: Unpaid costs of Medicare (FY2020)

About Us

Keck Medicine of USC is the University of Southern California’s medical enterprise, one of only two university-based medical systems in the Los Angeles area. We operate the Keck Medical Center of USC, which includes two acute care hospitals participating in the 340B program: Keck Hospital of USC and USC Norris Cancer Hospital.

We are committed to delivering exceptional, personalized and compassionate medical care. Our participation in the 340B program allows us to further service our community by “stretching scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”[2]

Benefits of the 340B Program

Keck Hospital and USC Norris are eligible to participate in the 340B program, because our medical centers provide care to a disproportionate share of low-income Medicare and Medi-Cal (Medicaid) patients. Keck Hospital has a disproportionate share hospital (DSH) percentage of 23.6%, and USC Norris has a DSH percentage of 30.01% (FY2019).

The savings gained through our participation in the 340B program help fund vital medical services and care to low-income, underinsured or uninsured patients in our community; health education; community benefit operations; and other programs, as listed above. The cost of prescription medications — in particular oncology medications for patients diagnosed with cancer — can be a source of financial strain for many patients, especially for those from low-income households. Our savings also help us extend access to specialized oncology services throughout Southern California.

Impact of Scaling Back the 340B Program

Our participation in the 340B program plays a key role in our ability to offer medical services and care to low-income, underinsured or uninsured patients in our community. Scaling back of the program would impact our ability to offer the services outlined above and hinder our efforts to provide exceptional care and vital medications to our patients and the communities we serve.

[1] A detailed report can be found in the Annual Report and Plan for Community Benefit.

[2] Health Resources and Services Administration

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