Anish Koka, MD, a cardiologist based in Philadelphia and known for his commentary on health policy, has criticized the federal 340B drug pricing program. He described it as a "disaster" that does not effectively aid poor patients but instead funds extravagant hospital projects and increases healthcare costs across the country. This statement was made on X.
"The 340b is an absolute disaster that does next to nothing to help poor patients," said Koka. "It is, on the other hand, a major driver of marble in hospital lobbies. It needs serious reform if we are to seriously think about tackling US health care costs."
The 340B Drug Pricing Program was created by Congress in 1992 to assist hospitals and clinics serving low-income populations by allowing them to purchase outpatient drugs at reduced prices. The intention is for eligible providers to use these savings to enhance access to care for underserved communities. However, critics argue that some hospitals benefit financially from the program without directly passing on these advantages to patients.
According to JAMA Health Forum, hospitals involved in the 340B Drug Pricing Program reported a 37% higher net income compared to non-participating hospitals. This increase is largely attributed to profits from discounted drugs rather than an expansion of services for low-income patients, leading to intensified calls for reform.
A report from Health Affairs Scholar indicates that between 2018 and 2024, nearly 80% of the growth in the 340B Drug Pricing Program resulted from increased drug utilization rather than price increases. When assessed by discounted prices, almost all program growth was linked to higher usage rates. Researchers suggest these trends raise questions about whether the expansion of the 340B program is truly enhancing patient access or primarily augmenting hospital revenue.
Dr. Koka is a board-certified cardiologist and founder of Koka Cardiology PC, a private practice located in Philadelphia, Pennsylvania. He completed his Cardiology Fellowship at Jefferson Health after obtaining his Doctor of Medicine from Temple University’s Lewis Katz School of Medicine. With over 12 years in private practice, Koka is recognized for his clinical expertise and insights into U.S. health policy and healthcare reform.
