The Nurses United for Healthcare Integrity (NUHI) has announced concerns regarding the exploitation of the 340B program by hospitals. The organization claims that hospitals purchase drugs at discounted prices through the program but charge patients full price, urging Congress to pass the 340B ACCESS Act to ensure savings benefit vulnerable patients. This announcement was made on NUHI's website.
According to a report by the Government Accountability Office (GAO), hospitals frequently exploit the 340B program by buying drugs at reduced rates and then receiving reimbursement from insurers or patients at significantly higher prices. This practice generates substantial revenues for hospitals, yet there is no legal requirement for these savings to be passed on directly to patients. The GAO report emphasizes that current program rules lack accountability measures necessary to ensure discounts reach those most in need, resulting in high out-of-pocket costs for vulnerable patients.
Further audits conducted by the GAO revealed that many hospitals do not pass along the full value of 340B discounts. In a review involving 55 covered entities, only 30 reported providing any discounts to low-income, uninsured patients through contract pharmacies. Of these, just 23 extended the full value of the 340B price, indicating that many patients are still billed at market or inflated rates while hospitals retain the financial margin.
Research indicates significant growth in the 340B program, leading to increased calls for oversight. The USC Schaeffer Center reports that the number of 340B-covered entity sites expanded from approximately 8,100 in 2000 to nearly 50,000 by 2020, with hospitals constituting the majority. Purchases through this program surged from around $4 billion annually in the mid-2000s to $38 billion by 2020. This expansion has created a multi-billion-dollar revenue stream for institutions and raised concerns about whether it benefits hospitals more than patients.
Nurses United for Healthcare Integrity is a coalition of former and retired nurses focused on patient advocacy and healthcare accountability. The group stresses that programs like 340B should function as intended by providing affordable access to medicine for vulnerable populations rather than serving as profit centers for hospitals. According to its official website, NUHI’s mission is to ensure reforms such as the 340B ACCESS Act enhance transparency, prevent profiteering, and maintain focus on patients and frontline providers.
