A federal program intended to help low-income patients has instead become a major revenue source for large California hospital systems.
Hospitals are using gaps in oversight within the 340B Drug Pricing Program to lock in substantial margins on prescription drugs — and driving healthcare costs higher for Californians in the process.
Today, the state’s 340B hospitals earn 3.6 times more from the program than they spend on charity care.
It’s time for Congress to bring stronger accountability to 340B and ensure that the program actually serves its intended beneficiaries: vulnerable patients.
