Dutch Rojas, the founder of ReKlaim Health, has raised concerns regarding nonprofit health systems' use of the 340B drug pricing program. According to Rojas, these systems secure discounts through the program but do not pass the savings on to patients. Instead, they bill insurers and patients at full price. This statement was made on X.
"It's called 340B," said Rojas. "The US government helps nonprofit health systems buy drugs at steep discounts. Do they pass those savings on to patients? NO! They pocket the difference, bill insurers and patients full price and call it charity care."
The 340B Drug Pricing Program, established in 1992 and administered by the Health Resources and Services Administration (HRSA), was designed to help healthcare providers stretch limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices, with the intention that these savings support access to care for low-income and uninsured patients.
A study published in 2024 by the National Library of Medicine highlighted a significant increase in 340B contract pharmacy arrangements from 1,300 in 2010 to over 60,000 by 2022. The study raised concerns about how financial benefits from these arrangements are distributed, noting a lack of evidence that patients directly benefit from the savings. Researchers emphasized the need for greater transparency in the program’s financial flows.
In addition, a study conducted by IQVIA in 2023 found that the 340B program accounted for 7.2% of the total U.S. drug market by volume. The analysis revealed that a large share of discounts gained through the program were retained by hospitals and contract pharmacies rather than being passed on to patients. The study also noted significant variability in how different institutions applied these discounts.
Rojas is recognized as a healthcare entrepreneur with three successful startup exits and is 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. Additionally, Rojas is known as a patient advocate who uses his platform to promote transparency and reform in the healthcare sector.
