Site-of-Care and White Bagging: What Infusion Programs Are Up Against
Two separate payer pressures — site-neutral payment policy and white/brown bagging mandates — are converging on the same outcome: less drug margin flowing through the hospital-outpatient setting.
Site-neutral payment policy narrows the reimbursement gap between hospital-outpatient and freestanding or physician-office settings, which erodes the traditional economic case for hospital-based infusion. White and brown bagging arrangements shift drug acquisition (and often the 340B benefit) away from the covered entity's own pharmacy entirely.
Why these have to be modeled together
Evaluating either pressure in isolation tends to understate the combined effect on a service line's economics. A defensible response usually combines payer contracting strategy with a clear-eyed pro forma that includes both effects from the start.
Site-of-care and 340B eligibility, in one pro forma.
The same feasibility approach used across our infusion engagements — chairs, payer mix and eligibility together.
Related pages
Next step
Assess your exposure.
A focused review of how these pressures apply to your specific service line.