A recent investigation by ADAP Advocacy has exposed substantial financial transformations within the 340B Drug Pricing Program, revealing remarkable increases in annual revenues and executive compensation across various healthcare institutions. The comprehensive audit, conducted in collaboration with the Community Access National Network (CANN), analyzed 33 covered entities, including 15 hospitals, 3 sexually transmitted disease clinics, and 15 HRSA-funded health centers. The findings demonstrate striking financial trends that challenge the program's original patient-centered objectives.
The study found that among the audited entities, annual revenues surged by an average of 772.92%, while executive compensation simultaneously increased by 237.11%. Most notably, the research indicated a concerning decline in charity care provision, with hospitals reducing their charity care as a percentage of annual revenues by 34.80%. Brandon M. Macsata, CEO of ADAP Advocacy, emphasized the disconnect between the program's intended purpose and current implementation. He highlighted that while patients living with HIV can now access effective therapies, the program appears to prioritize provider interests over patient needs.
The report raises critical questions about the 340B Drug Pricing Program's current structure and its potential deviation from its original mission of supporting vulnerable patient populations. By documenting significant financial gains for institutions alongside reduced charity care, the study provides crucial insights into the program's evolving landscape. The full report, titled "The 340B Drug Pricing Program and its Potential Impacts on Annual Revenues, Executive Compensation, and Charity Care Provision in Eligible Covered Entities–Supplemental Report," is available for download through the ADAP Advocacy website.
