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 serve a significant number of low-income patients. DSH hospitals provide nearly twice as much care to Medicaid and low-income Medicare patients as non-DSH hospitals. DSH hospitals account for about one-third of all hospitals, but provide nearly 60 percent of all uncompensated care.
Scripps Mercy Hospital contributed $128,066,630* to community benefits for fiscal year (FY) 2018, including:
- $12,894,711 in charity care
- $66,690,993 in MediCal and other means-tested government programs*
- $27,245,944 in Medicare shortfall
- $942,449 in bad debt
- $3,817,785 in subsidized health services
- $11,819,188 in professional education and health research
- $4,054,392 in community health services
- $601,167 in community building activities
* Does not include hospital provider fee payments. Scripps Mercy Hospital received $86,353,991 in provider fee payments spanning multiple years in FY 2018.
Scripps Mercy Hospital saved $17,636,426 from participating in the 340B program FY 2018.
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:
- 29.0 percent Medicare
- 27.9 percent Medi-Cal
- 15.5 percent commercially insured patients
- 15.2 percent 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. $536,138 was spent on in-lieu of funds in 2018.
- 655 licensed beds
- 3,812+ employees
- San Diego’s longest-established and only Catholic medical center
- Provides health care services for 25.1 percent of the inpatient population living within the hospital’s central service area
- 37.4 percent DSH hospital