Figure 2. Size of Estimated Profits From the Outpatient Administration of Medicare Part B–Covered, Physician-Administered Drugs Paid by Medicare and Medicare Beneficiaries Relative to Benchmarks in 2013 and 2016.

Calculations based on data constructed and described in eTable 1 in the Supplement. The sample includes nonprofit and public general acute care hospitals participating in the 340B program in each year. One hundred percent of Medicare outpatient Part B claims are linked to the 340B hospital covered entity list, Medicare hospital cost reports, and 2013 Medicaid disproportionate share hospital (DSH) audits. The top and bottom borders of each box represent the 75th and 25th percentile, respectively, and the center line inside each box represents the median. The whiskers represent 1.5 times the interquartile range. A, Estimated profits from administering drugs to Medicare patients, divided by net operating revenue. Net operating revenue is revenue from operations less insurer discounts. B, Estimated profits as a share of uncompensated care costs. Uncompensated care is defined as the sum of charity care costs and bad debt costs. C, Estimated profits as a share of hospital disproportionate share payments in Medicare and Medicaid. Medicaid DSH payment data were not available and so 2016 amounts are estimated using 2013 data. Profits are estimated based on an assumption that the cost of drugs under the 340B program is equal to 50% of revenue.