USC Arcadia Hospital 340B Good Stewardship Principles

The 340B Drug Pricing Program is a federal government program that requires drug manufacturers to provide outpatient drugs to eligible health care organizations at significantly reduced prices. The 340B program is tailored to assist hospitals that provide services to low-income individuals or serve isolated rural communities.

About USC Arcadia Hospital

Founded in 1903, USC Arcadia Hospital is a full-service community hospital with 348 licensed beds and a medical staff comprised of more than 700 physicians. USC Arcadia Hospital is designated by Los Angeles County as a Comprehensive Stroke Center as well as a heart attack receiving center, offering advanced neurological and cardiovascular services, including cardiac catheterization, open heart surgery, neurosurgery, and neuro-interventional radiology. USC Arcadia Hospital is also certified by L.A. County for providing an Emergency Department Approved for Pediatrics. The hospital is recognized as a center of excellence for a variety of other clinical services, including orthopedics, cancer care, bariatric surgery, and obstetrics. We admit over 16,000 patients per year and treat more than 50,000 emergency room visitors annually.

The 340B program helps ensure access to key medications needed by patients who access many of the services listed above. The program also enhances USC Arcadia Hospital’s ability to provide low-cost services to uninsured and medically underserved populations. In 2018, USC Arcadia Hospital realized savings of $1.34 million from the 340B program.

340B Program Benefits

The 340B Program enables patients to access needed prescription medications regardless of income level or insurance coverage and enables Methodist Hospital to provide a variety of needed treatments and services, including:

• Medications upon discharge at no cost to patients who might otherwise find such medication unaffordable
• Access to financial assistance with the purchase of specialty medications
• Clinical pharmacy services to patients with serious medical conditions to improve medication adherence and outcomes
• Access to specialty services and clinical expertise
• Free health screenings in local settings accessible to homeless and low-income populations
• Opioid stewardship program to help affected patients and families
• No-cost nicotine replacement therapy for patients trying to quit smoking

Impacts of Cutting Back 340B

In 2018, USC Arcadia Hospital provided charity care and in-kind health services valued at $18 million. The hospital’s cost of uncompensated care provided to Medi-Cal (Medicaid) and Medicare patients was $27 million during 2018. Key medicines provided through the 340B program at Methodist Hospital include contrast media, tPA, Lexiscan, Isuprel, Vasopressin, and Propofol. Scaling back the 340B Program would put at risk Methodist Hospital’s ability to provide many of the services and medications described above to uninsured and under-insured patients.