Dutch Rojas, founder of ReKlaim Health, has expressed concerns regarding the 340B drug pricing program, suggesting it has deviated from its original intent and is now being exploited by health systems for financial gain. This statement was made on the social media platform X.
“THE 340B PROGRAM WAS FOR PATIENTS,” said Rojas. “Health Systems turned it into a cash cow. Discounted drugs. Full-price billing.”
The 340B Drug Pricing Program was established in 1992 under the Veterans Health Care Act to enable eligible safety-net providers to purchase outpatient drugs at significant discounts. According to the Congressional Research Service, the legislative aim was to assist these providers in “stretching scarce federal resources” to serve more patients and offer more comprehensive care. The program primarily targets hospitals and clinics serving low-income or uninsured populations.
Health systems participating in 340B often generate substantial profits by marking up discounted drugs. A 2022 report by the Community Oncology Alliance revealed that hospitals marked up oncology drug prices by up to 11 times their discounted acquisition cost. Furthermore, a Milliman study found that 340B hospitals charge nearly 200% more for outpatient drugs to commercial insurers than non-340B hospitals, raising questions about patient benefit.
According to PhRMA (Pharmaceutical Research and Manufacturers of America), 68 hospitals in Pennsylvania participate in the 340B program and hold over 2,250 pharmacy contracts nationwide. Only 29% of these pharmacies are located in medically underserved areas, despite the program’s mission to support vulnerable communities. Additionally, it was reported that 88% of these hospitals provide charity care below the national average, challenging the narrative that 340B primarily benefits low-income patients.
Rojas is a healthcare entrepreneur known for advocating transparency and reform within the U.S. healthcare system. As reported by the Garden State Times, he has championed physician-led care, price transparency, and policy solutions aimed at reducing corporate control in medicine. His background includes founding multiple startups and advising on healthcare legislation.
ReKlaim Health is a healthcare reform initiative founded by Rojas focused on advancing patient-centered, transparent healthcare policy. According to the Garden State Times, the organization critiques profit-driven practices within the system, including abuse of the 340B program, and supports physician-owned hospitals and independent medical practices. Its mission emphasizes reducing inefficiency and increasing access.
