Scripps Mercy Hospital in San Diego and Chula Vista participate in the 340B Drug Pricing Program. Designated as a disproportionate share hospital (DSH), Scripps Mercy is eligible to purchase outpatient drugs at a reduced price, allowing it to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.
The 340B Drug Pricing Program is a vital lifeline for safety-net providers — such as those at Scripps Mercy Hospital — who provides critical health services in our communities. The program is narrowly tailored to reach only hospitals that provide a high level of services to low-income individuals or that serve isolated rural communities. Savings from the 340B program help hospitals meet the healthcare needs of underserved patients across the country.
Scripps Mercy Hospital contributed $125,582,139 to community benefits for Fiscal Year 2021, including:
- $11,212,193 in charity care
- $46,859,173 in Medi-Cal and other means-tested government programs
- $43,589,561 in Medicare shortfall
- $1,459,856 in bad debt
- $2,183,502 in subsidized health services
We use our 340B savings to keep our costs down so we can keep our doors open. Scripps Mercy is designated a DSH hospital, providing care to a large number of patients who either lack health insurance or are covered through a government subsidy program. Our payer mix is:
• 27.9% Medicare
• 25.5% Medi-Cal
• 11.7% commercially insured patients
• 22.6% of patients have another payment source, including self-pay, CMS, or charity care
One way Scripps Mercy is able to provide care to some of our most needy patients is through in-lieu of funds. In-lieu of funds are used for unfunded or underfunded patients and their post-discharge needs. Funds are used for board and care, skilled nursing facilities, long-term acute care and home health. In addition, funds are also used for medications, equipment and transportation services. $1,981,058 was spent on in-lieu of funds in FY2021.
• 655 licensed beds
• 4,297 employees
• San Diego’s longest established and only Catholic medical center
• Provides health care services for 23.6% of the inpatient population living within the hospital’s central service area
• 36.53% DSH hospital