Commercial markups on pediatric oncology drugs at 340B pediatric hospitals

Abstract

Eligible pediatric hospitals can purchase clinician‐administered drugs at discounted rates through the 340B Drug Pricing Program and charge payers prices exceeding drug acquisition costs, but the magnitude of these markups is not known. In a study of newly approved oncology drugs at pediatric 340B hospitals, median negotiated prices ranged from 102% (interquartile range [IQR]: 91%–156%) of average sales price (ASP) at Phoenix Children's Hospital to 630% (IQR: 526%–630%) at Driscoll Children's Hospital. Pediatric hospitals participating in the federal 340B Drug Pricing Program can extract steep payments on new drugs from commercial insurers, though with wide variation between and within hospitals.