Alex Schriver, Senior Vice President of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), said that the 340B drug program benefits large hospitals at the expense of patients. This statement was made on X, a social media platform.
“The White House is proposing a reform of the obscure 340B drug program, which enriches large hospitals at the expense of patients,” said Schriver.
As part of its April 2025 executive order on lowering drug prices, the White House directed the Department of Health and Human Services (HHS) to examine reforms to the 340B Drug Pricing Program. According to Hogan Lovells, the order instructed officials to survey hospital acquisition costs, adjust Medicare payment rates, and require federally funded health centers to provide certain injectables at or below 340B prices. The move reflects growing federal concern that hospitals benefit more than patients under the current system.
The 340B program continues to expand rapidly. According to the Health Resources and Services Administration (HRSA) and the Commonwealth Fund, covered entities purchased $66.3 billion in outpatient drugs in 2023, compared to $53.7 billion in 2022. The program now includes nearly 42,000 entities and over 53,000 care sites, highlighting both its scale and the heightened policy scrutiny over how funds are used.
Pennsylvania provides a snapshot of the program’s local impact. According to a PhRMA state profile, 67 hospitals across 30 counties participate, with more than half operating at a financial loss and relying on 340B savings to maintain services like obstetrics and oncology. While hospitals report using funds for free or discounted drugs and expanded clinics, only 16% of contract pharmacies are in rural areas, raising equity concerns.
Schriver is Senior Vice President of Public Affairs at PhRMA, where he oversees communications strategy across media platforms. According to LegiStorm, he previously worked at the digital consulting firm Targeted Victory and has extensive experience in political campaigns, crisis management, and corporate communications. His career has focused on shaping narratives for both private and public sector leaders.
PhRMA is a trade association founded in 1958 that represents leading biopharmaceutical research companies. According to its official site, its mission is to advocate for public policies supporting innovation, access to medicines, and intellectual property protections. PhRMA is a key player in U.S. healthcare debates, particularly around drug pricing and regulatory policy.
