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Monday, October 12, 2026 · Updated 12:05 PM MT · 49 stories today
Mon, Oct 12 · 49 stories todayPRO
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Federal PolicyOctober 12, 2026

Hospitals Detail Millions in Losses From Proposed 340B Payment Cut

In public comment letters on CMS's proposed 2027 outpatient payment rule, six health systems quantified annual losses from a proposed cut to 340B drug payments, ranging from about $7 million to $109 million each. The rule, proposed July 2 with comments due August 31, would pay hospitals average sales price minus 33.4% for 340B drugs under Medicare, down from the current average sales price plus 6%, while raising nondrug outpatient payments by 8.44% to maintain budget neutrality. It would also accelerate CMS's recovery of remedy payments tied to a 2018-22 340B cut the Supreme Court struck down, raising the annual clawback rate from 0.5% to 3%. Systems including Henry Ford Health, Trinity Health, Baptist Health, MUSC Health, UVA Health and UNC Health Nash warned the cuts would force reductions to infusion, oncology, behavioral health and other safety-net programs funded by 340B savings.

Why it mattersHospitals and health systems relying on 340B drug savings to cross-subsidize safety-net services face significant Medicare revenue losses that could force cuts to infusion, oncology, behavioral health and rural access programs starting in 2027.

Pharmacy · Finance

Read the full article at beckershospitalreview.com →
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