PhRMA, the trade association representing leading pharmaceutical research and biotechnology companies, said the 340B Drug Pricing Program has become a goldmine for nonprofit hospitals with no guarantee that patients benefit from the profits.
According to PhRMA, "Behind the scenes, 340B medicine markups are a goldmine for nonprofit hospitals. And with no one peeking behind the curtain to see how they use program profits, there's no guarantee that patients benefit. It's time to fix 340B."
The 340B program now provides a nearly $65 billion oversight-free revenue stream for hospitals, clinics, and their for-profit partners, with no guardrails on how much hospitals can mark up 340B drugs and no requirement that hospitals pass savings on to patients. A new analysis found that 99.7 percent of 340B providers escape scrutiny due to a lack of oversight, and even among those audited, the majority reported adverse findings, according to Healthcare Dive.
A recent Senate Health, Education, Labor and Pensions Committee investigation found that two major hospital systems generated over $1 billion in 340B revenue without passing savings on to patients. Richmond Community Hospital generated $276.5 million in 340B revenue from 2018 to 2023 without benefiting patients, while the Cleveland Clinic pulled in nearly $933.7 million over just three years from the program, according to Patients Rising.
PhRMA launched a seven-figure advertising campaign called "Meet Mark," targeting Congress with television, digital, and social media ads portraying fictional nonprofit hospital leaders celebrating profits derived from 340B discounts and urging lawmakers to fix the program, according to Fierce Healthcare.
PhRMA represents leading pharmaceutical research and biotechnology companies in the United States who are committed to discovering and developing medicines that enable patients to live longer and healthier lives, according to PhRMA.
