Rachid Akiki, Head of Regulatory and Clinical Affairs at 2San, has highlighted a financial dispute surrounding the 340B drug discount program, which was originally intended to assist hospitals serving low-income populations. Akiki's statement was made on X.
"A multibillion-dollar clash is brewing over the 340B drug discount program," said Akiki, Head of Regulatory & Clinical Affairs. "Designed to help hospitals serve low-income patients, it's now under fire. Drugmakers say it's costing Medicaid $6.5B in lost rebates. Critics claim some hospitals are pocketing the savings instead of reinvesting in care."
The 340B Drug Pricing Program, established by Congress in 1992, aims to help healthcare providers maximize limited federal resources by allowing eligible hospitals and clinics to purchase outpatient drugs at reduced prices. According to the American Hospital Association, this program supports providers that serve vulnerable and low-income communities.
The Medicaid and CHIP Payment and Access Commission reported in its March 2023 publication that drug manufacturers estimate the 340B program results in $6.5 billion in lost Medicaid rebates due to duplicate discounts when drugs are subject to both Medicaid rebates and 340B pricing. This issue has contributed to ongoing tensions between healthcare providers and pharmaceutical companies.
A report from 2023 by 340B Health revealed that 77 percent of hospitals participating in the program provided less charity care than the value of their 340B discounts. Nearly half of these hospitals spent less than one dollar on charity care for every dollar received in discounts. These findings have raised concerns about whether the savings from the program are reaching low-income patients as intended.
Akiki is noted for his leadership in healthcare strategy, innovation, and regulatory compliance at 2San. His previous roles include Medical Director at XRWorkout and Chief Operating Officer at Book Doctors. He holds degrees from Harvard Medical School and Hult International Business School.
