2022 Industry Profile Toolkit: The 340B Program: Once a Safety Net Program, Now a Program that Fails Vulnerable Patients

Teaser image for 340B program report

The 340B drug pricing program was designed to help improve access to medicines for vulnerable, low-income patients through manufacturer

discounts to specific qualifying hospitals and federally funded clinics. Unfortunately, the program has strayed far from its purpose, with more

and more health care entities using these deep discounts for themselves. A recent New York Times investigation illustrates one of the ways in

which the program is often abused to serve as a profit growth engine for wealthy hospital systems. The investigation demonstrated how a large

hospital system is underinvesting in its 340B hospital that serves lower-income patients and patients of color.i Meanwhile, the hospital system

is using those patients so that it can access 340B discounts and invest in expanding outpatient facilities in wealthier areas. Unfortunately, this

is just one of many examples of health care entities manipulating the program to benefit their bottom line. At this point, it seems patients are

the only ones not benefiting from the billions of dollars in discounts manufacturers provide each year through the 340B program.

Teaser image for 340B program report

This website uses cookies and other tracking technologies to optimize performance, preferences, usage, and statistics. By clicking “Accept All”, you consent to store on your device the cookies and other tracking technologies that require consent. You can tailor or change your preferences by clicking “Manage My Cookies”. You can check our privacy policy for more information.