Kansas hospitals play an essential role in the Kansas health care delivery system. The 122 Kansas community hospitals are committed to providing compassionate health care to all Kansans. 

While firm on that commitment, there are many challenges testing every hospitals’ ability to maintain that promise. It is well documented that Kansas hospitals, especially those in rural areas, are financially struggling. A recent study by the Center for Healthcare Quality and Payment Reform suggests that more than 700 rural hospitals across the country are at risk of closure. 

Unfortunately, Kansas ranks second in the country with the number of at-risk hospitals (62), trailing Texas (80). The cause of the financial struggles is multi-faceted and includes soaring labor and supply costs, growing uninsured, stagnant reimbursement and reductions in important programs such as the 340B Program.

The federal 340B Drug Pricing Program started in 1992 and requires drug manufacturers that participate in the Medicaid program to offer discounted drugs to certain hospitals and federally qualified health centers. 

For more than three decades, this program has enabled safety net providers, like hospitals, to purchase medications at a discount so they can stretch limited resources as far as possible, reaching more eligible patients and providing more comprehensive services in their communities. Hospitals in turn provide access to services like maternity care in rural areas, mental health services and cancer treatment closer to home. In Kansas, there are more than 85 hospitals, mostly rural, participating in the 340B Program.

Unfortunately, drug manufacturers have recently started to decimate the 340B Program by limiting the number of contract pharmacies in which a hospital may contract. The actions taken by drug manufacturers are jeopardizing the ability of Kansans to access needed prescriptions and other vital health services.

Fortunately, Kansas lawmakers recognized the harmful actions of the drug manufacturers and have appropriately responded to put protections in place for Kansans to continue to access care and affordable medications through the 340B Program for the next two years. 

Kansas hospitals appreciate the actions during the 2024 legislative session by Governor Laura Kelly and the Kansas Legislature in supporting their local hospitals, federally qualified health centers, and independent pharmacies over the drug manufacturers. 

There also are ongoing federal efforts in play to protect the 340B Program. Keeping programs like the 340B Program intact maintains access to needed care and affordable medications for our most vulnerable citizens, especially those residing in rural Kansas. 

Chad Austin is the president and CEO of Kansas Hospital Association, a voluntary, non-profit organization existing to be the leading advocate and resource for members. KHA membership includes 237 member facilities, of which 121 are full-service, community hospitals. Founded in 1910, KHA’s vision is: “Optimal Health for Kansans.”