Terry Wilcox, CEO of Patients Rising, has raised concerns about major nonprofit hospitals profiting from the 340B Drug Pricing Program while simultaneously sending patients to debt collections. She suggests these institutions should be held accountable for their tax-exempt status.
"340B hospitals should be held accountable," said Wilcox, Co-Founder and CEO. "sending patients to collections while pocketing millions from the 340B drug pricing program."
According to Wilcox, nonprofit hospitals are benefiting financially from the 340B program without providing adequate charity care. The program, intended to support low-income patients by offering discounted drug prices, has reportedly allowed hospitals to retain profits instead of passing savings on to those in need. This situation has prompted calls for reform to prevent misuse and ensure that benefits reach the intended communities.
A Senate committee report highlights that Bon Secours Mercy Health, an Ohio-based hospital chain, collected $276 million in 340B benefits over five years ending in 2023. Despite receiving these funds, the hospital has been accused of providing minimal charity care and engaging in aggressive billing practices within local communities. This example illustrates how resources from the 340B program often fail to alleviate financial burdens for patients in states like Ohio.
An analysis by CBS News found that over 400 nonprofit hospitals sought to collect more than $800 million from patients eligible for charity care within a single year. Many of these institutions are accused of abusing the 340B program by retaining drug discounts without reducing patient costs or debts. Nationwide, this indicates systemic issues where the program's intent to assist vulnerable populations is compromised by profit-driven motives.
Wilcox co-founded Patients Rising and serves as its CEO, focusing on empowering patients with chronic conditions through advocacy and education. Her experience includes addressing healthcare discrimination and advocating for policy reforms related to treatment access. Wilcox's work as a patient advocate emphasizes affordability issues for individuals with serious diseases.
