TCC CEO Mike Pease said through the 340b program, TCC has the ability to offer prescriptions at a greatly reduced price for patients, “And the second thing is, it offers another form of income for organizations like us as well as other health centers, hospitals systems, Ryan White clinics, most of us participate in this program. And we reinvest those dollars into programs like care coordination, case management, transportation, translation services – things we don’t traditionally get reimbursed for.”

Pease said while this is a federal program, former Governor Andrew Cuomo‘s 2021 budget introduce a measure to “carve out” the savings healthcare facilities receive and directed it back into the state coffers. That measure was put on hold due to the Pandemic, but is now part of Governor Kathy Hochul‘s budget and is set to go into effect April 1.

Pease said if this goes forward, it means a loss of over $2 million for TCC. According to a report by Buffalo Business First, Buffalo-based Evergreen Health could see $13 million in annual losses to its $117 million budget due to the changes. Business First reports that the change is expected to usher in a $250 million funding loss statewide, and hospitals across New York are predicting losses of $240 million. Pease said this also would affect UPMC Chautauqua and Brooks Memorial Hospital who have their own pharmacy programs.

Pease said TCC is part of the Save New York’s Safety Net Coalition, which has come up with an alternative proposal for the State Legislature, “On how we could continue to get the benefit of the program as health centers but also we would ensure that the program’s guidelines are being met from the standpoint of reinvesting those dollars into programs that are supportive, things like that. So, there is a way that this could benefit both the state, the community – which is the most important, as well as us as providers of those services.”

Pease added that both State Senator George Borrello and Assemblyman Andy Goodell have been supportive of the continuance 340b program.