The AAMC sent a July 31 letter (PDF) to Sen. Peter Welch (D-Vt.) and Rep. Doris Matsui (D-Calif.) endorsing the 340B Pharmaceutical Access to Invest in Essential, Needed Treatments and Support (PATIENTS) Act (H.R. 4581, S. 2372). The AAMC had previously supported an earlier version of the legislation first introduced in the 118th Congress [refer to Washington Highlights, April 19, 2024].
The bill, which is also supported by the American Hospital Association, 340B Health, and others, would amend 340B statute to clarify covered entities’ ability to use community-based “contract pharmacies” to distribute covered outpatient drugs to patients. Since 2020, an increasing number of manufacturers have opted to restrict access to 340B discounts for eligible drugs dispensed at contract pharmacy locations, prompting enforcement action by the Health Resources and Services Administration (HRSA), the agency responsible for overseeing and administering the program [refer to Washington Highlights, May 21, 2021]. In response to these actions, several manufacturers sued the federal government, contending that the 340B statute is silent with respect to covered entities’ ability to use contract pharmacy arrangements. Litigation related to this matter is ongoing, with the U.S. Court of Appeals for the District of Columbia Circuit issuing a 2024 opinion in favor of the manufacturers [refer to Washington Highlights, May 24, 2024].
In its letter, the association outlined the importance of contract pharmacy arrangements to 340B-eligible academic health systems and the patients they serve, noting, “Considering that AAMC-member health systems and teaching hospitals often serve patients from across the country and serve expansive catchment areas, it is often logistically infeasible to require patients to travel to the teaching hospital’s in-house pharmacy to receive their medicines, creating a legitimate need for the use of contract pharmacies.”