BUFFALO, N.Y. (WKBW) — Tens of thousands of patients in under-served communities could be without millions of dollars in healthcare funding come April 1. That's why Evergreen Health and one other health center downstate in Harlem are suing New York State.
"The lawsuit honestly is the last stop for us. It's what we've built our whole model on is using that program," said Michael Lee, COO of Evergreen.
What is 340B?
It's a program that helps fund services at certain qualifying facilities, including Evergreen and Jericho Road locally.
Providers buy prescription drugs at a discounted prices, the federal government then reimburses them at full price and providers use that leftover money to pay for services.
"Like transportation and housing and food pantry services and dental and behavioral health services," said Lee.
The program provides $14 million for Evergreen annually and helps employ hundreds in WNY.
What's changing?
In Governor Kathy Hochul's budget, she's looking to change the way 340B works, transitioning to a new system.
“Which will create transparency in reimbursements to pharmacies, eliminate profiteering among health care intermediaries, leverage the state’s purchasing power to negotiate with drug manufacturers, streamline practitioner administration, and reduce confusion," reads the budget.
The state would transition to this new system on April 1, according to the Department of Health.
Lee says that would leave members of the LGBTQ+ community, people living with disabilities and communities of color without funding they need.
"That is an immediate funding deficit for us," said Lee. "At a time where it's critical to make a greater investment in these communities, we're now taking away one of the only funding mechanisms we have."
340B isn't going anywhere and the state will reinvest $700 million to ensure providers can care for vulnerable populations after the transition.
Lee is worried about what happens during the transition.
"This is across the board for FQHCs, Ryan White providers, family planning clinics, all those individuals across the state, hospitals as well, start a fiscal cliff," said Lee.
So why sue?
The hope is that this lawsuit provides a temporary block on this transition.
"It is sort of a last shot a last tool that we have. There are other ways that you can change the criticism the state has of the program without completely decimating the safety net," said Lee.
New York State Department of Health tells 7 News they can't comment on pending litigation.
