Dutch Rojas, Founder of ReKlaim Health, has expressed concerns about nonprofit academic health systems exploiting the 340B drug discount program. He said that these institutions profit from a benefit originally intended to assist low-income patients. This statement was made on X.
"Nonprofit Academic Health Systems pay no taxes. Not federal. Not state. Not local. Not even property tax on entire medical cities," said Rojas. "Instead, they receive public funding: Massive Medicaid subsidies, 340B drug discounts (profit from the poor), Tax-exempt bonds (Wall Street without the risk), Federal research grants (thank you, ACIP!), Academic subsidies just for being a “school. They pay their CEO more than the Governor, HHS Secretary, and U.S. President combined. This is not a nonprofit. It is a government-sponsored hedge fund with a teaching hospital façade."
The 340B Drug Pricing Program, established in 1992 and administered by the Health Resources and Services Administration (HRSA), aims to help healthcare providers extend limited resources to serve vulnerable populations. It enables eligible entities to purchase outpatient drugs at reduced prices, with the savings intended to support access to care for low-income and uninsured patients.
A study published in 2024 by the National Library of Medicine found a significant increase in the number of 340B contract pharmacy arrangements, rising from 1,300 in 2010 to over 60,000 by 2022. The study highlighted concerns regarding the distribution of financial benefits from these arrangements and noted a lack of evidence showing direct patient benefits from the savings. Researchers emphasized the need for greater transparency in the program's financial flows.
According to JAMA Health Forum, hospitals participating in the 340B program have been more inclined to acquire independent physician practices, leading to increased hospital-based outpatient care. This trend has sparked concerns about potential cost increases and shifts in care delivery. Stakeholders continue to debate the implications of this pattern for patient care and healthcare costs.
Rojas is known as a healthcare entrepreneur with three successful startup exits and an advocate for physician-owned hospitals and independent medical practice. He writes extensively on U.S. healthcare issues, focusing on improving patient outcomes and exposing inefficiencies within the current system. Rojas is also recognized as a patient advocate who uses his platform to promote transparency and reform in the healthcare sector, according to his LinkedIn profile.
