Save Our States, a nonprofit policy advocacy organization, said the federal 340B drug discount program is being abused while nonprofit hospitals spend heavily on luxury renovations rather than directing savings toward vulnerable patients.
According to Save Our States, "The 340B drug discount program is being abused while nonprofit hospitals spend big on luxury renovations."
A September 2025 House Ways and Means report found that nonprofit hospitals receive $37 billion in annual tax benefits, yet their community benefit spending falls short by more than $25 billion relative to those tax breaks. NYU Langone spent $8 million on a Super Bowl LIX ad while paying no federal income taxes, and Jefferson Health's advertising budget surged from $190,000 in 2017 to more than $12.47 million in 2023, according to the Chronicle Online.
The share of Medicare Part B medicines administered by 340B hospitals doubled over the last decade, while the share administered in physician offices and non-340B hospitals steadily declined. The shift was especially acute for cancer therapies, with 340B hospitals capturing nearly half of all breast cancer and multiple myeloma claims by 2024—more than doubling their market share since 2012, according to PhRMA.
The program does not require hospitals to report how much money they make through 340B or how the funds are spent. Research shows most nonprofit hospitals do not direct the majority of their 340B revenue toward helping low-income patients, according to the Paragon Health Institute.
Save Our States is a conservative policy nonprofit founded in 2009 and led by Trent England. The organization's mission is to defend the constitutional power of U.S. states, preserve the Electoral College, and promote state-level policies to protect elections, the economy, and critical infrastructure, according to Save Our States.
