Cincinnati-based Bon Secours Mercy Health will undergo an investigation from a U.S. Senate committee, which will be led by Louisiana Sen. Bill Cassidy, according to an Oct. 4 report from the Richmond Times-Dispatch.
The investigation centers around Bon Secours' use of the government's 340B program, which allows hospitals to buy drugs at steep discounts. It was intended to help hospitals that serve underinsured patients but has now become controversial.
Bon Secours has several affiliates in the Ohio and Virginia region, including several planned ASCs and an ongoing partnership with Compass Surgical Partners.
Federal audits and watchdog groups have found that some hospital networks use the 340B program to buy drugs cheaply and sell them at a much higher profit.
The Senate Committee on Health, Education, Labor and Pensions' investigation cites reports about Richmond (Va.) Community Hospital, which faced scrutiny from The New York Times last year for its profitability despite a lack of services. Some physicians quoted in The New York Times referred to the Bon Secours hospital as a "glorified emergency room" and as a "money-laundering operation" for Bon Secours' "wealthier outposts," according to the Richmond Times.
According to the report, Bon Secours was able to buy cancer drugs through the 340B program and resell them at seven times the purchase price.
The probe does not require Bon Secours to produce any records, but the Senate committee has subpoena power that can be used to compel record production or witness testimony.
The investigation will also probe Cleveland Clinic's participation in the 340B program.