UC Davis Health: Our 340B Story
UC Davis Medical Center
Based in Sacramento, UC Davis Medical Center is part of UC Davis Health and the University of California health system. It is a nationally renowned academic medical center that combines clinical practice, teaching and research to advance health for all. It is the only level 1 trauma center for both adult and pediatric emergencies in inland Northern California – an area covering 65,000 square miles, 33 counties and more than 6 million residents, and is a leading referral hospital for the most seriously injured or ill patients, and the most medically complex cases.
UC Davis Health, with its faculty-practice group, provides care for a wide range of challenging diseases and conditions. Its outpatient services offer primary and specialty care to a highly diverse patient population. The Medical Center, which serves as a safety-net hospital and cares for patients regardless of their ability to pay, is ranked among the top 50 hospitals nationwide for specialty services in cardiology, diabetes, endocrinology, pulmonology and more. It also has one of the highest volume kidney transplant programs in the nation, and UC Davis is the only NCI designated comprehensive cancer center in the region.
340B: A federal program supporting safety-net providers
The 340B prescription drug program supports our role as a safety-net provider in offering vital health care services for the communities we serve. The program is narrowly tailored to only hospitals that provide a high level of services to low-income individuals or serve isolated rural communities. 340B hospitals – which include trauma centers, labor and delivery services, HIV-AIDS services and immunizations – provide significantly more money-losing but vital health services than non-340B hospitals.
340B by the numbers (fiscal year 2025)
- $345M – Approximate annual 340B savings that benefit UC Davis Health patients
- $230M – Cost of uncompensated care provided, including charity care, Medicaid underpayment and bad debt
- $363M – Cost of uncompensated care provided to Medicare beneficiaries.
- 34.41% – UC Davis Health’s Disproportionate Share Hospital (DSH) percentage
- 65 – Miles away from the next closest DSH hospital that provides tertiary care
Benefits of the 340B Program
The 340B Program affords patients the high-quality care they deserve, no matter their income level or insurance coverage. The cost savings from reduced drug pricing represent a key factor in the continuum of patient care, enabling hospitals and health systems to provide an array of needed treatments and services, including:
- Medications upon discharge at no cost for uninsured or underinsured patients who would otherwise be unable to afford treatment
- Financial assistance for high-cost specialty medications
- Clinical pharmacy services for patients with serious and chronic medical conditions to improve medication adherence, disease management, and health outcomes
- Pediatric critical care transport services provided through UC Davis Children’s Hospital, including the transfer of critically ill and injured pediatric patients from referring hospitals throughout Northern California at no cost to patients and families
- Street Medicine medical and support services program.
- Subsidized chemotherapy and immunotherapy services for Medicaid and uninsured patients receiving treatment through our infusion centers and oncology clinics
- Enhanced programs to streamline medication authorization to improve medication adherence and access for patients
- Access to specialty care services and clinical expertise throughout the Sacramento region, including support for local community health clinics
- Adult and Adolescent Behavioral Health Services, in partnership with Sacramento County
- Free health screenings provided in public schools and community locations that primarily serve homeless, low-income, and medically underserved populations
- Free community vaccine programs
- Free preventive care procedures, such as colonoscopies and mammograms for underserved populations
- Opioid stewardship and substance use support programs designed to assist affected patients and families
- No-cost nicotine replacement therapy and smoking cessation support services
- Clinical programs that support predominantly vulnerable populations
- Clinical and patient support services at FQHCs in the Sacramento region
Impacts if 340B is scaled back
Scaling back the 340B Program would jeopardize UC Davis Health’s capacity to offer all the services mentioned above to our patients.
* DSH hospitals such as UC Davis Medical Center serve a significantly disproportionate number of low-income patients and receive payments from the Centers for Medicaid and Medicare Services to cover the costs of providing care to uninsured patients.