History
The National Association of Public Hospitals and Health Systems (NAPH) in 1993 formed the Public Hospital Pharmacy Coalition (PHPC) in Washington, D.C., soon after it led the effort to include disproportionate share hospitals in a new federal drug discount program created under section 340B on the Public Services Act. The Coalition’s purpose was to advocate on behalf of 340B hospitals, most of which were NAPH members at that time. The 340B program was established as a result of the efforts of a bipartisan group of Congressional health care leaders and was signed into law in November 1992 by President George H. W. Bush. In 2007, PHPC became an independent, tax-exempt trade association and was renamed Safety Net Hospitals for Pharmaceutical Access. The organization has grown from a few dozen hospitals to approximately 500 member hospitals, and its staff has increased from two to 14. SNHPA’s President and General Counsel, William von Oehsen, has led the organization since its inception. Mr. von Oehsen was instrumental in the creation of the 340B program and in helping many hospitals enroll in, and begin to effectively navigate, the 340B program. Ted Slafsky, now Executive Director, joined the organization in 1996. Mr. Slafsky runs the day-to-day operations of the association and has played a crucial role in SNHPA’s growth and influence in Washington. The 15-member Board of Directors supervises the business, property and affairs of SNHPA. The President and Executive Director serve as officers.
340B Drug Discount Program
The 340B program requires drug manufacturers to sell outpatient drugs at a discount to certain providers -- “safety net providers”. “Safety net providers” include not only hospitals serving many low-income patients (“disproportionate share hospitals” and free-standing children’s hospitals) but several other types of providers such as community health centers, state and local health departments, and HIV clinics. A number of new categories of hospitals including different types of rural hospitals and a small group of hospitals designated as free-standing cancer hospitals became eligible for the 340B program in March 2010. Together, these providers serve tens of millions of uninsured and underinsured people every year. It is a proven cost-savings strategy for a substantial percentage of health care providers. |