The Patients’ Right to Know Campaign has raised concerns regarding the distribution of discounted drugs by Pennsylvania hospitals participating in the 340B Drug Discount Program. According to a statement on its website, these hospitals are involved in 1,630 arrangements with out-of-state pharmacies, including those in affluent areas, prompting questions about oversight.
The campaign reported that these hospitals are distributing discounted drugs to pharmacies across 32 states, including California, Oregon, and Washington. The group argues that this widespread distribution may not align with the program’s original goal of aiding local vulnerable populations in Pennsylvania. They assert that such practices could undermine efforts to expand access for uninsured and low-income patients within the state.
According to the campaign, some discounted drugs have been found in affluent communities like Palm Beach, Florida, where average home values exceed $1.4 million. This situation is seen as highlighting an equity gap within the program. The campaign stresses that this practice contradicts the mission of the 340B program and underscores the need for increased oversight and accountability to ensure savings benefit those most in need.
The Patients’ Right to Know Campaign also revealed that many pharmacies receiving Pennsylvania’s 340B-discounted drugs are major retail chains and pharmacy benefit managers (PBMs), such as Walmart and Express Scripts. In one example cited by the campaign, a hospital purchased a cancer drug for $3,400 and resold it for over $25,000, resulting in a profit exceeding $20,000. The campaign argues that hospitals should demonstrate that such profits are reinvested into charity care and free medicine programs rather than sending patients to collections without informing them of available assistance.
As a national advocacy initiative focused on transparency and reform within the 340B Drug Discount Program, the Patients’ Right to Know Campaign advocates for stronger federal and state oversight along with clearer reporting standards. Its mission emphasizes ensuring accountability so that “patients deserve to know” how hospitals and pharmacies utilize 340B profits for patient-focused outcomes.
