Sen. Charles Schumer made his annual visit to Genesee County (he visits every county in the state at least once a year) to pledge to the local medical community and the citizens who depend on that medical community that he will do everything he can to restore funding for the 340B Drug Pricing Program.
The 340B program was enacted in 1992 provides qualifying hospitals -- hospitals that tend to serve more low-income patients -- with deep discounts on medications used in the treatment of cancer. The intent of the program is to allow hospitals to treat more patients and provide comprehensive services.
Dan Ireland, CEO of United Memorial Medical Center, said the program has allowed the hospital to reinvest $2 million annually into better patient care.
"To some folks, this is about money but really what it is about is the investment that's made for people, for health care, for our friends and our neighbors and our loved ones," Ireland said. "That $2 million gets reinvested in programs to help support cancer care as we talked about and the emergency room and outpatient clinics so folks can access care close to their homes in a timely manner."
He added, "This will change the lives of people if these cuts continue. It will change the lives here at the hospital will change lives throughout our communities. So I'm grateful for the support."
The cuts to WNY regional hospitals add up to millions of dollars a year, Schumer said, and he considers it critical that the funding is restored.
"I always defend our rural hospitals because people in rural areas should get the same health care as people in urban areas," Schumer said. "First, the people have to come greater distances. But second, it's not the density of population. So when you have to use one of these expensive machines, a CAT scan or an MRI, it is very expensive. If you're in Rochester or New York City, that machine can be used almost 24/7, so it can pay itself back. But here, not so, but you still want the person here to have the same CAT scan or an MRI or whatever so they get the same health care."
Not all funding was cut to UMMC. So far, it's been about $600,000 a year.
The Centers for Medicare & Medicaid Services enacted the cuts, which makes the cuts merely a matter of policy, so Schumer said he has tools to use to try and restore the funds. As minority leader, he can work to restore the funding through the budgetary process or he can pursue legislation to restore the funding.
He said his effort would receive bipartisan support because there are both Republicans and Democrats who represent rural areas and about 1,000 rural hospitals are lobbying for the funding.
"We are going to do everything we can to get 340B back to the way it was and get Noyes (a hospital in Livingston County) and UMMC and all of our hospitals the help they need."
Critics of the program -- which include pharmaceutical companies -- say that too many hospitals abused the program. Those hospitals, they say, did not use the cost savings to improve patient care. Instead, they say, they padded their bottom line.
Private oncologists have also been critical of the program, saying that it gives hospitals a subsidized, unfair price advantage in providing treatment.
"I'm trying to get lower drug prices across the board so we would try to help them as well, but because you're not getting it doesn't mean you go after somebody who is getting it," Schumer said in response to a question about the oncologists' complaint. "These are hospitals that need the help."
Before discussing the 340B program at UMMC, Schumer reflected on the upcoming World Series and explained why he hates the Red Sox. Listen (mp3).
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Sen. Schumer and Dan Ireland.
