Safety Net Hospitals for Pharmaceutical Access (SNHPA), the group that represents hospitals in the federal 340B discount drug program, recently asked pharmaceutical manufacturer Amgen to withdraw its new policy that all 340B purchases of the company's drug Neulasta be made exclusively through specialty distribution channels.
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SNHPA said in a statement that the policy would raise pharmaceutical costs significantly for more than 1,000 hospitals and clinics across the country that serve large numbers of poor, uninsured and underinsured patients. The group also said the restriction only apples to 340B hospitals, which violates federal guidelines due to discrimination.
According to SNHPA general counsel member Maureen Testoni, the new restriction will force 340B hospitals to pay more for Neulasta, a man-made human protein used to reduce the risk of infection in patients undergoing heavy chemotherapy, because wholesalers normally sell the drug at a lower price than specialty distributors.
A SNHPA press release reported that one of their member hospitals said that the restriction would cost it approximately $200,000 annually. Also, shipments will take longer under the new distribution model, according to the press release.
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Testoni said SNHPA met with the Health Resources and Services Administration (HRSA) to look into the matter before the restriction activated, however, the policy went into place anyway beginning last week for 340B customers.
"We're now in the process of deciding what our next step is," she said. "While the restriction applies to other 340B organizations in addition to hospitals, 340B hospitals are still being singled out because it does not apply to non-340B hospitals."
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Amgen did not reply to a request for comment for this story.