Dixon council inks agreement with OSF Saint Katharine that allows enrollment in drug discount program

DIXON — The Dixon City Council on Monday, May 19, approved an agreement with OSF HealthCare marking its commitment to providing care to low-income and uninsured patients.

The memorandum of understanding is basically a formality because OSF Saint Katharine Medical Center, a non-profit and a Catholic health system, as part of its policy already provides care to all individuals regardless of their ability to pay. It’s really intended to fulfill a prerequisite for the hospital to participate in a federal assistance program that provides drug discounts to hospitals and clinics that qualify, Dixon Mayor Glen Hughes said.

The 340B Drug Discount Program, authorized under Section 340B of the Public Health Service Act, provides significant discounts on outpatient drugs for certain safety-net health care providers, primarily those that serve a higher number of low-income and uninsured patients, according to the Health Resources and Services Administration website.

In Lee County, the median household income is about $68,459 a year compared to about $80,306 a year across Illinois. About 11.7% of people in Lee County are living in poverty, which is nearly equal to the estimated 11.6% statewide, according to the U.S. Census 2023 American Community Survey 5-Year Estimates data.

That data also estimates that 3.6% of people in Lee County do not have health care coverage, which is less than the estimated 6.2% for all of Illinois.

The agreement “does not create any substantive legal requirements on the part of the city,” City Attorney Rob LeSage told the council, adding that the agreement doesn’t impose any cost or liability requirements on the city.

“We’re just making that statement that we have an understanding with them and that we’re supporting the fact that they are providing services to an above-average lower-income or Medicaid clientele,” Hughes said.

OSF Saint Katharine is “effectively doing these things already, and by memorializing this in this standard form of agreement...you wave the magic wand, and now they are eligible to receive pharmaceuticals at a lower cost,” LeSage said.

“This agreement marks a significant milestone in our continuing efforts to improve healthcare access and affordability for the communities we serve,” OSF Saint Katharine President Jackie Kernan said. “By participating in this program, we can extend our resources, making sure that our patients receive the medications they need at a lower cost. We thank the city of Dixon for their partnership and shared vision in making this initiative possible.”