Johnson County Hospital | Nebraska

The Value of the 340B Program Case Study

Who is Johnson County Hospital?

Opened in 1958 as a county-owned hospital, Johnson County Hospital is an 18-bed critical access hospital based in Tecumseh, Neb., a rural community of 1,800 located in the Southeastern part of the state. It also operates rural health clinics in Tecumseh and neighboring Gage County. Recognizing the broader community’s unique needs — and looking for ways to amplify the hospital’s impact — hospital leaders made the decision to participate in the 340B Drug Pricing Program in 2012. 

Since then, the 340B program has allowed Johnson County Hospital to purchase certain drugs from pharmaceutical companies at a discount and apply the savings to support community programs that it otherwise would not have the resources to implement. With a commitment and dedication to improving health care access and outcomes among some of Nebraska’s most rural residents, Johnson County Hospital is a textbook example of how the 340B program is working as Congress intended.

Who Does Johnson County Hospital Treat?

Johnson County Hospital is a lifeline for many Nebraskans, including those living in rural areas. The U.S. Census Bureau estimates the population of Johnson County was 5,200 in 2020, with a population density of just 14.1 per square mile — significantly less than the nationwide average of 93.8. While this creates a strong sense of community, it also means that care options are far less accessible than in urban areas. Statewide, over two-thirds of Nebraska counties are considered “medically underserved.” Without Johnson County Hospital, patients would be forced to travel anywhere between 45 miles and more than 100 miles away to receive care at the nearest advanced-care hospital.

“The 340B program allows us to do even more 
for the community without tax dollars being used.”
Olivia Little
340B Director at Johnson County Hospital

What’s the Value of the 340B Program for Johnson County Hospital’s Community?

To strengthen the community’s access to care close to home, Johnson County Hospital has created many important programs with the support of 340B savings. Johnson County Hospital is proud to participate in the 340B program and openly and regularly reports on the benefits made possible through the program. In Fiscal Year 2023-24, Johnson County Hospital provided $831,000 in 340B benefits, including:

Robust Health Services in the Community — Home health is critical to meeting patients where they are, providing care in a safe, familiar environment, and helping patients manage chronic conditions to prevent them from getting worse and requiring more acute care. Johnson County Hospital’s home health department regularly provides free blood pressure checks at local restaurants and coffee shops. It also goes out into the community to provide low-cost toenail care.

Enhanced Transportation Options for Patients — Using 340B savings, hospital leaders recently launched a new interfacility ambulance service to benefit Johnson County Hospital and the surrounding hospitals throughout Southeast Nebraska. Instead of waiting several hours for an ambulance transfer service, patients can now use the in-house ambulance service option. To further ease transportation challenges, Johnson County Hospital used 340B savings to purchase a van that transports patients to and from medical appointments when the local on-demand, publicly funded bus is not running.

Breast Health — Recognizing the high proportion of local women with dense breast tissue, Johnson County Hospital invested in a 3D mammography upgrade through savings from the 340B program. Before this upgrade, one-third of women had to be referred to 3D imaging over an hour away, which can be a barrier for some and increase costs.

“For us, our focus is always on the patient 
— we must stretch the dollars to serve the
 community. Without the 340B benefit, a lot of 
these vital services would not be possible.” 
Olivia Little 
340B Director at Johnson County Hospital

340B Hospitals Need Support

Since it was created in 1992, the 340B Drug Pricing Program has helped improve health care access for millions of Americans without using any taxpayer dollars — just as Congress intended. However, misguided policy proposals and continued unlawful restrictions by pharmaceutical manufacturers are threatening the future and accessibility of the 340B program.

For example, a growing number of drug companies are implementing restrictions on contract pharmacies and increasing administrative requirements, which make it harder for hospitals like Johnson County Hospital to participate in the 340B program. It also makes it more difficult for independent rural retail pharmacies to keep their doors open, which could force members of the local community to travel many miles to get the medicines they need.

From coast to coast, Americans need the federal government to protect the 340B Drug Pricing Program so that patients can maintain access to high-quality, affordable care. Leaders in Washington must act to protect the program for the patients and communities it was established to help.