Republicans in Congress are sharpening their focus on overhauling the federal 340B drug discount program, citing mounting evidence of abuse by wealthy nonprofit hospitals.
At last Tuesday’s House Ways and Means Oversight Subcommittee hearing titled “Where Tax-Exempt Hospitals Are Spending Your Tax Dollars,” lawmakers and witnesses described a program that has strayed far from its original purpose of helping hospitals serve the poor.
Committee Chairman Rep. Jason Smith, R-Mo., opened the session by spotlighting hospitals that “masquerade” as rural facilities to qualify for extra Medicare and 340B benefits meant for struggling small-town providers.
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