Thomas Johnson, Executive Director of ASAP 340B, said that the public is concerned about the 340B drug discount program's lack of transparency and increasingly seeks information on how funds are utilized. This statement was made during a video interview published by the HEAL Collaborative on YouTube.
"There's this presumption regarding transparency that people don't care about that issue," said Johnson, according to YouTube. "The second largest drug discount program in the country doesn't have basic transparency as part of its charge, they're offended by that. They would like to see where this discount money is going. That should be a principle that there should not be any disagreement about."
Established in 1992, the 340B Drug Pricing Program is administered by the Health Resources and Services Administration (HRSA). It allows eligible healthcare providers to purchase outpatient medications at reduced costs to serve low-income and uninsured populations. The program's expansion and perceived lack of oversight have prompted widespread calls for reform.
According to a 2024 report from the National Alliance of Healthcare Purchaser Coalitions, outpatient service prices at large 340B hospitals averaged 35% higher than those at non-340B facilities. This cost discrepancy is estimated to increase healthcare expenses by $36 billion annually for employers.
A study published in 2024 by the National Library of Medicine found that the number of 340B contract pharmacy arrangements increased from 1,300 in 2010 to over 60,000 by 2022. Despite this growth, limited evidence exists that these arrangements provide direct benefits to patients, raising concerns about financial transparency.
Johnson has over three decades of experience in healthcare, nonprofit, and association management. He previously served as President and CEO of Medicaid Health Plans of America and the DC Hospital Association and has held leadership roles in both public and private sector health organizations. Currently, he chairs the Board of the Sickle Cell Disease Association of America.
