Jennifer Riley, Executive Director of Patients Come First Pennsylvania, expressed concerns that large hospital systems are exploiting the 340B Drug Pricing Program. She emphasized that Congress must restore the program’s original intent to support vulnerable patients. Riley's statement was made in an op-ed.
"Large hospital systems, not bound by the same level of accountability, have taken advantage of the program's lack of transparency," said Riley. "Well-funded hospitals can purchase drugs at steep discounts, bill patients or insurers full price, and pocket the difference. If 340B savings continue to be siphoned away from true safety-net providers, the consequences for vulnerable Pennsylvanians could be devastating. Congress must act now to restore the integrity of the 340B program."
The 340B Drug Pricing Program, established in 1992, enables eligible safety-net hospitals and clinics to purchase outpatient medications at significant discounts. According to the Association of American Medical Colleges, the program aims to help healthcare organizations stretch limited federal resources to serve more patients, particularly those who are uninsured or underinsured. The program is widely regarded as a crucial support for vulnerable communities by allowing expanded access to affordable medications.
According to the Drug Channels Institute, the 340B Drug Pricing Program reached $54 billion in discounted drug purchases in 2022, up from $44 billion in 2021 and just $9 billion in 2014. This rapid growth has been driven primarily by hospitals, which now account for most 340B contract pharmacy relationships. The program now represents over 16% of the entire U.S. drug market, highlighting its expanding impact on the healthcare sector.
A 2024 analysis published in JAMA Health Forum found that while 340B hospitals achieve substantial savings from drug discounts, the program’s benefits do not always reach low-income populations as originally intended. Researchers reported mixed outcomes on patient access and noted ongoing concerns about transparency and accountability in how savings are used. These findings highlight continued debate over whether the program fulfills its mission for vulnerable groups.
Riley serves as the Executive Director of Patients Come First Pennsylvania and has a two-decade career dedicated to advocacy at local, state, and national levels. She is recognized for her strategic leadership and is regarded as one of Pennsylvania’s most influential women in public service, business, and nonprofit sectors. Her work focuses on removing barriers to patient well-being and advancing access to care for underserved communities.
