Terry Wilcox, CEO of Patients Rising, has raised concerns about major nonprofit hospitals profiting from the 340B Drug Pricing Program while simultaneously sending patients to debt collections – an issue garnering attention in Pennsylvania. She suggests these institutions should be held accountable for their tax-exempt status.
According to Wilcox, nonprofit hospitals are benefiting financially from the 340B program without providing adequate charity care. The program, intended to support low-income patients by offering discounted drug prices, has reportedly allowed hospitals to retain profits instead of passing savings on to those in need. This situation has prompted calls for reform to prevent misuse and ensure that benefits reach the intended communities.
An analysis by CBS News found that over 400 nonprofit hospitals sought to collect more than $800 million from patients eligible for charity care within a single year. Many of these institutions are accused of abusing the 340B program by retaining drug discounts without reducing patient costs or debts. Nationwide, this indicates systemic issues where the program’s intent to assist vulnerable populations is compromised by profit-driven motives.
Lown Institute’s Pennsylvania report estimates nonprofit hospitals receive about $2.0B/year in tax benefits (2020–2022) and 62% had a “fair share deficit.” A fair share deficit means estimated tax breaks outweigh what hospitals return via charity care and community investment. The statewide deficit is estimated at roughly $1.1B/year, a flashpoint in debates over aggressive billing and collections.
Wilcox co-founded Patients Rising and serves as its CEO, focusing on empowering patients with chronic conditions through advocacy and education. Her experience includes addressing healthcare discrimination and advocating for policy reforms related to treatment access. Wilcox’s work as a patient advocate emphasizes affordability issues for individuals with serious diseases.
