340B profits often exceed charity care spending

A new study finds that hospitals serving some of the most vulnerable patients earn more in 340B profit than they spend on charity care—another sign of the need for 340B reform. Plus—get ready for extra-nutritious purple tomatoes. (582 words, 2 minutes, 54 seconds)

DSH hospitals' 340B profits often exceed charity care spending, finds study

A new report finds that 85% of disproportionate share (DSH) hospitals earn more in 340B profit than they spend on charity care—another sign of the need to reform this program intended to support vulnerable patients.

Under the 340B program, certain entities that treat large numbers of low-income or uninsured patients can purchase medications at steep discounts.

What’s really happening: In 18 states and D.C., every DSH hospital earns more in 340B profit than it spends on charity care, according to a new report published by AIR340B, an alliance of organizations (including BIO) committed to 340B reform.

Why it matters: 340B discounts ought to be passed on to patients in the form of lower out-of-pocket costs or free/reduced-cost charity care.

The numbers: In 2022, 340B discounted drug purchases totaled $54 billion, with purchases from DSH hospitals representing $42 billion (78%) of those sales, says the report. The same year, DSH hospitals earned $44.1 billion in 340B profits but only reported $18.5 billion in charity care costs.

The bottom line: The findings imply DSH hospitals “primarily use 340B profit for other purposes, including funding payroll, equipment, and other operating costs. Additionally, it should be noted that DSH hospitals benefit from tax-free status and receive other safety net funding to support their charity care activities,” concludes the report.

The context:The Lown Institute Hospitals Index similarly found 80% of non-profit hospitals spent less on financial assistance and community investment than the estimated value of their tax breaks—and their charity care spending wasn’t that much different from their for-profit counterparts, reported STAT News.

Learn more at 340breform.org.

A new superfood will soon hit stores – thanks to biotech

Purple tomatoes bioengineered to be extra nutritious will be available in the grocery aisles in a couple of weeks, a distributor announced Tuesday.

A new superfood: Norfolk Healthy Produce’s purple tomatoes include two genes from a snapdragon to make them rich in anthocyanins, antioxidants found in blackberries and blueberries shown to help prevent cancer, inflammatory diseases, and type 2 diabetes.

Journey to market: The U.S. Department of Agriculture (USDA) greenlit the tomatoes in September 2022, followed by the Food and Drug Administration (FDA) in June. They’re already sold in a few select restaurants and specialty grocers, and seeds went on sale to home gardeners in February.

Why it matters: Genetically modified organisms like the purple tomato are safe and can provide added benefits like better nutrition. With more than 13,000 gardeners already purchasing purple tomato seeds, consumers are indicating greater acceptance.

Scaling up: Red Sun Farms, a greenhouse grower and distributor, is partnering with Norfolk to produce a co-branded purple tomato. In mid-April, 9-ounce packs of purple “Empress limited-edition” tomatoes will be sold via select retail channels in the mid-Atlantic and the Southeast at expected prices of $3.99-$4.49.

What they’re saying: “Our company is offering a choice to those consumers who are aligned with our vision, which is, it's great to have more nutritious and tasty choices, more sustainable choices, and biotechnology is one safe and acceptable source of biodiversity,” said Nathan Pumplin, CEO of Norfolk Healthy Produce.

President Biden’s Thursday: Joining Barack Obama and Bill Clinton for a campaign fundraiser at New York City’s Radio City Music Hall, per the Associated Press.

What’s Happening on Capitol Hill: Congress is in recess this week and next. Sen. Joe Lieberman passed away suddenly at the age of 82. The Bipartisan Commission on Biodefense, of which he was co-chair, released a statement recognizing his commitment to biodefense and his “selfless public service, his kindness, and civility.”