Ted Okon, Executive Director of the Community Oncology Alliance (COA), has raised concerns about the practices of large 340B health systems. He claims these systems are exploiting cancer patients, particularly those who are sick and elderly, for financial gain rather than prioritizing their care. Okon's statement was made on X.
"Imagine using cancer patients as a source of revenue," said Okon. "That's exactly what large 340B health systems are doing. Profiting off of sick and often elderly patients. Just disgusting!"
According to the Health Resources and Services Administration (HRSA), the 340B Drug Pricing Program was established in 1992 to assist healthcare providers in stretching limited federal resources to serve vulnerable communities. The program allows eligible hospitals and clinics to purchase outpatient drugs at reduced prices with the aim of improving access to care for low-income patients. Despite its intentions, the program has faced criticism regarding how savings are utilized.
A study published in 2024 by the National Library of Medicine reported a significant increase in 340B contract pharmacy arrangements, rising from 1,300 in 2010 to over 60,000 by 2022. Researchers highlighted a lack of evidence that financial benefits were being passed on to patients and called for increased transparency in the distribution of savings.
In a separate analysis conducted in 2023 by the National Alliance of Healthcare Purchaser Coalitions, it was found that outpatient service prices at large 340B hospitals were on average 35% higher than those at non-340B hospitals. This price difference was estimated to contribute an additional $36 billion annually to healthcare costs for employers.
Okon is recognized as a leading expert on cancer care policy and frequently testifies before Congress while appearing in major media outlets advocating for reforms in areas such as Medicare reimbursement, drug pricing, and the 340B program. His professional background includes executive roles within pharmaceutical companies and founding oncology-related businesses.
