Hospitals' cancer drug prices are higher than prices at independent oncology practices partly due to the different patient populations, according to a North Carolina Hospital Association statement in The Charlotte Observer.
The NCHA, along with Charlotte, N.C.-based Carolinas HealthCare System and Winston-Salem, N.C.-based Novant Health, published statements in The Charlotte Observer defending the high price of cancer drugs. The Charlotte Observer recently published a report describing the high mark-ups of chemotherapy drug prices by hospitals compared to independent physicians.
The NCHA cited the following reasons for high mark-ups of cancer drugs:
• Cancer treatments require highly trained personnel and specialized equipment and facilities, which adds cost.
• Hospitals take all patients, whereas independent oncology practices can choose their patients. Hospitals therefore tend to treat more ill and more uninsured or underinsured patients.
• The 340B federal program allows hospitals to purchase drugs at a lower cost, which enables hospitals to continue offering services for low-income patients.
In addition, Novant Health said its Presbyterian Hospital in Charlotte, N.C., does not profit on infusion services and in fact has a several million dollar loss on chemotherapy services each year. Carolinas HealthCare System said its prices are comparable to healthcare providers across the country, and it is working to design a more value-based system.
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The NCHA, along with Charlotte, N.C.-based Carolinas HealthCare System and Winston-Salem, N.C.-based Novant Health, published statements in The Charlotte Observer defending the high price of cancer drugs. The Charlotte Observer recently published a report describing the high mark-ups of chemotherapy drug prices by hospitals compared to independent physicians.
The NCHA cited the following reasons for high mark-ups of cancer drugs:
• Cancer treatments require highly trained personnel and specialized equipment and facilities, which adds cost.
• Hospitals take all patients, whereas independent oncology practices can choose their patients. Hospitals therefore tend to treat more ill and more uninsured or underinsured patients.
• The 340B federal program allows hospitals to purchase drugs at a lower cost, which enables hospitals to continue offering services for low-income patients.
In addition, Novant Health said its Presbyterian Hospital in Charlotte, N.C., does not profit on infusion services and in fact has a several million dollar loss on chemotherapy services each year. Carolinas HealthCare System said its prices are comparable to healthcare providers across the country, and it is working to design a more value-based system.
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