Jennifer Riley, Executive Director of Patients Come First Pennsylvania, has raised concerns about the exploitation of the 340B Drug Pricing Program by large hospital systems. In an op-ed, she said that Congress must restore the program’s original intent to support vulnerable patients.
“Large hospital systems, not bound by the same level of accountability, have taken advantage of the program’s lack of transparency,” said Riley. “Well-funded hospitals can purchase drugs at steep discounts, bill patients or insurers full price, and pocket the difference. If 340B savings continue to be siphoned away from true safety-net providers, the consequences for vulnerable Pennsylvanians could be devastating. Congress must act now to restore the integrity of the 340B program.”
The 340B Drug Pricing Program was established in 1992 to enable eligible safety-net hospitals and clinics to purchase outpatient medications at significant discounts. According to the Association of American Medical Colleges, the program’s purpose is to help healthcare organizations stretch limited federal resources to serve more patients, particularly those who are uninsured or underinsured. The program is widely regarded as a crucial resource for vulnerable communities by allowing expanded access to affordable medications.
Recent analysis indicates that the 340B Drug Pricing Program reached $54 billion in discounted drug purchases in 2022, up from $44 billion in 2021 and just $9 billion in 2014. The Drug Channels Institute reports that this growth is largely driven by increased hospital participation, with hospitals now dominating most contract pharmacy arrangements. The program now constitutes more than 16% of the total U.S. drug market, underscoring its significant influence on prescription drug distribution.
According to PhRMA (Pharmaceutical Research and Manufacturers of America), 68 hospitals in Pennsylvania participate in the 340B drug discount program, maintaining over 2,250 contracts with pharmacies nationwide. Only 29% of these contract pharmacies are located in medically underserved areas, raising questions about the program’s reach. Additionally, it was noted that 88% of participating hospitals in Pennsylvania provide charity care below the national average.
Riley serves as Executive Director of Patients Come First Pennsylvania and has a two-decade career dedicated to advocacy at local, state, and national levels. She is recognized for her strategic leadership and is regarded as one of Pennsylvania’s most influential women in public service, business, and nonprofit sectors. Her work focuses on removing barriers to patient well-being and advancing access to care for underserved communities.
