LAKEPORT – On June 1, Sutter Lakeside Hospital petitioned to enroll in the Public Service Act Section 340B drug discount program, which is a section of the Veterans Health Care Act of 1992.

Upon enrollment in the 340B program, Sutter Lakeside Hospital (SLH) will obtain access to certain reduced cost pharmaceuticals that will assist the hospital in continuing its mission of providing quality health care to the community of Lake County.

“Providing safe, quality health care for every community member is the number one goal of Sutter Lakeside Hospital,” stated Siri Nelson, Sutter Lakeside's chief administrative officer. “The 340B program will help restore the delicate balance between administering care for every individual who comes through our doors and being financially responsible.”

A typical 340B hospital can expect to save approximately 25 percent off of the cost of drugs used for outpatients (who return home the same day) and up to 5 percent off of the cost of drugs used for inpatients (who require an overnight stay at the hospital).

“Being able to save up to 25 percent on medication costs will be a tremendous help to our financial stability,” continued Nelson. “This cost savings will allow us to continue to provide more and more quality health care services to everyone who needs them.”

To participate in this program, a memorandum of understanding (MOU) between the city of Lakeport and Sutter Lakeside was required.

The MOU outlined Sutter Lakeside’s ongoing commitment to provide health care services to low income individuals who are not entitled to Medicare or Medicaid benefits at no reimbursement or considerably less than full reimbursement from these patients.

Lake County Board of Supervisors Chair Anthony Farrington signed the MOU during the Board of Supervisors' meeting on Tuesday, June 1, along with Sutter Lakeside’s Chief Financial Officer, John Gates.

“Our interest in collaborating with Sutter Lakeside and taking advantage of this MOU is so that we can partner with and support the efforts of the hospital which in turn provides health care services and benefits to the community,” stated Farrington. “We are hopeful that this cost reduction program from pharmaceuticals will increase access for indigent and underinsured and allow the hospital to utilize financial resources in other areas to serve the public. “

The 340B program is administered by the Office of Pharmacy Affairs (OPA). The OPA and drug manufacturers have the right to conduct compliance audits of participating facilities. Sutter Lakeside’s financial department is prepared to create and maintain a clear audit trail to remain in compliance with the regulations of the program.

“We look at the 340B program as a blessing and gift to our financial state,” stated Nelson. “Each time we save money on the cost of providing certain services, we route those savings to other services around the hospital. Everybody wins.”