MedPAC Cited Dobson | DaVanzo’s 2017 Paper on Drug Spending at 340B Hospitals

Published Tuesday, April 21, 2020

In their March 2020 Report to the Congress: Medicare Payment Policy, MedPAC addressed the question of whether 340B drug discounts create incentives for hospitals to choose more expensive products. As part of their analysis, MedPAC cited Dobson | DaVanzo’s 2017 report entitled Financial Challenges Faced by 340B Disproportionate Share Hospitals In Treating Low-Income Patients, written by Al Dobson, Kennan Murray and Joan DaVanzo. MedPAC wrote that “Dobson and colleagues found that 340B DSH hospitals incur higher drug spending compared to non-340B hospitals due to the type of patients they treat and the characteristics of the facilities they operate. Accounting for differing patient and facility characteristics using propensity score matching (that matched 340B hospitals to non-340B hospitals based on patients’ and hospitals’ characteristics), Part B spending per beneficiary in 2013 was 15 percent greater at 340B DSH hospitals than at non-340B hospitals ($3,204 versus $2,794). However, because 58 percent of the 340B DSH hospitals that could not be matched to non-340B hospitals were therefore excluded from the analysis, a limitation of this study is that it may not be generalized to all 340B DSH hospitals.”