From The Columbus Dispatch

September 24, 2005

2 Local Hospitals Sign Up To Cut Cost Of Drugs For Needy

By Suzanne Hoholik

Two local hospitals have joined a federal program that promises savings on drugs prescribed to poor patients.

Public hospitals and private, nonprofit facilities that serve a certain percentage of needy patients are eligible to participate and save at least 15 percent on the cost of brand-name drugs and 11 percent on generics. About 550 hospitals participate nationwide, with average savings of about $2 million a year, according to the Public Hospital Pharmacy Coalition.

Doctors Hospital and Grant Medical Center are the most recent to sign up.

Hospitals say they fall short when they prescribe drugs to low-income or poor patients who can't pay. They are either not reimbursed at all by Medicaid, or the reimbursement doesn't cover their costs.

"The price of prescriptions continues to go up much higher than the rate of inflation," said Ted Slafsky, executive director of the coalition, a group of hospitals that share a goal of making health care accessible to the poor.

"The hospitals benefit because, as they try to continue their mission to continue to provide care to anyone who comes in the door, they can also try to control that budget that keeps going up and up."

According to the Kaiser Family Foundation, a private, nonprofit research group, prescription-drug costs for hospitals climbed 10 percent from 2001 to 2002.

The discount is for medications given in outpatient care at emergency departments and hospital clinics. A bill introduced in Congress would extend the reduced prices to inpatient medications.

The savings in the program come at the beginning, when the drugs are purchased.

For example, a cholesterol medication that costs about $3 per pill would go for about $2.25 per pill for hospitals enrolled in the program. This adds up when millions of pills are purchased every year.

"It's a way to be compensated by the government for this process and opens us to take care of an even larger portion of these patients in the community." said Peg Huwer, pharmacy director at Doctors.

Hospitals are eligible if more than 11.75 percent of their patients can't pay for care.

At Doctors, about 17 percent of the patients fit the criteria, while at Grant, about 14 percent are unable to pay, officials say.

Because they are private, nonprofit hospitals, Doctors and Grant had to enroll through the Columbus Health Department.

In return, the hospitals agreed to report back to the department on the program, accept patients referred by the city and participate in a discussion with other hospitals about the pricing program, said Dr. Teresa Long, Columbus health commissioner.

While this is new for Doctors and Grant, almost 290 health-care centers are participating throughout the state.

Besides hospitals, other centers include family-planning clinics, state-operated AIDS programs and tuberculosis centers.

Slafsky said the reduced-pricing program has helped the bottom line.

"There are many cases where hospitals have had to close their pharmacies and strongly considered it," Slafsky said. "This has helped them at least stay out of the point where they're going into bankruptcy."

shoholik@dispatch.com

Saving on medicine

Because of the high percentage of poor patients served, 13 Ohio hospitals -- including four in Columbus -- qualify for a federal program to buy prescription drugs for outpatients at a discounted price. The program saves hospitals millions of dollars.

The hospitals:

University Hospital, Cincinnati

MetroHealth Medical Center, Cleveland

St. Vincent Charity Hospital, Cleveland

University Hospitals, Cleveland

Doctors Hospital, Columbus

Grant Medical Center, Columbus

Ohio State University Medical Center, Columbus

OSU Hospitals East, Columbus

Miami Valley Hospital, Dayton

Brown County General Hospital, Georgetown

Southern Ohio Medical Center, Portsmouth

Community Hospital, Springfield

St. Vincent Mercy Medical Center, Toledo

Source: Public Hospital Pharmacy Coalition