Basia Jenkins, an anesthesiologist and founding partner of Health Professionals for Equality and Community (HPEC), expressed concerns regarding the profits from 340B-discounted drugs. She said that these profits are not clearly reducing patients’ costs and called for reforms to address potential abuses — an issue drawing attention in Pennsylvania. The statement was made on the social media platform X.
“There is no clear evidence that 340B hospitals and their contract pharmacies use 340B profits to help lower costs for patients,” said Jenkins, Founder Partner. “contract pharmacies and hospitals generate profits sometimes by charging vulnerable patients the full non-340B price for their prescriptions.”
According to a report by the U.S. Government Accountability Office (GAO), the oversight of 340B contract pharmacies by the Health Resources and Services Administration (HRSA) requires improvement. The GAO noted risks associated with pharmacies dispensing 340B drugs to ineligible patients and highlighted that covered entities might generate revenue by being reimbursed at non-discounted rates for drugs acquired at 340B prices. The GAO recommended clearer guidance and stronger audits to ensure that discounts benefit eligible patients rather than contributing to profit margins.
A New England Journal of Medicine (NEJM) analysis of Blue Cross Blue Shield claims from 2020–2021, involving over 404,000 patients and 4.7 million infusion visits, reported significant hospital markups for physician-administered drugs. It found that hospitals eligible for the 340B program retained a larger share of private-insurer drug spending compared to others—64.3% at 340B-eligible hospitals versus 44.8% at non-340B hospitals and 19.1% at independent practices—indicating a weak pass-through of savings to patients.
In Pennsylvania, 68 hospitals participate in 340B and hold roughly 2,250 contracts with pharmacies nationwide, yet only 29% of those contract pharmacies are in medically underserved areas and 88% of 340B hospitals provide charity care below the national average. These figures intensify questions about whether 340B revenue in the state is being used to reduce costs for vulnerable patients or simply bolster hospital and pharmacy margins.
Jenkins is recognized as a physician anesthesiologist with a long clinical career and active involvement in physician advocacy and health policy discussions. She is publicly known as “@Docbasia” across various platforms where she uses her professional expertise to comment on issues related to patient affordability and system reform.
