Mark Storey, a Radiation Oncologist at the Oklahoma Proton Center, has raised concerns about the 340B Drug Pricing Program, claiming it is being used by large institutions to suppress competition. He suggested that the program should be reviewed at the federal level. The statement was made on X.
"340b used to be a good program," said Storey. "In rural places - maybe still on balance at times. But often it is used as a consolidation tool by large institutions to kill competition in the market. Needs to be addressed at fed level."
According to 340B Health, the 340B Drug Pricing Program was established by Congress in 1992. It allows eligible healthcare providers to purchase outpatient drugs at significantly reduced prices, enabling covered entities to stretch limited federal resources and serve vulnerable populations. Eligible entities include certain hospitals, community health centers, and specialized clinics.
A report by the National Alliance of Healthcare Purchaser Coalitions in 2024 found that prices at large 340B hospitals were on average 35% higher for common outpatient services compared to non-340B hospitals. The report estimated an additional $36 billion in annual healthcare costs for employers based on claims data from over 25 million workers and their families.
According to a 2021 report by the Berkeley Research Group, while 340B hospitals constituted 45% of all acute care hospitals, they accounted for nearly 60% of hospital drug reimbursement. Drug reimbursement per patient was nearly double at these hospitals compared to non-340B hospitals. This analysis was based on Medicare and commercial claims data.
Dr. Storey is a board-certified radiation oncologist specializing in proton therapy for treating various cancers at the Oklahoma Proton Center. He has extensive experience in his field and is committed to improving patient outcomes through advanced radiation treatment options. His residency was completed at MD Anderson Cancer Center.
