What’s Behind Pharma’s Attack On Hospitals? Understanding The 340B Program
The 340B Drug Pricing Program, established by Congress in 1992, allows safety-net hospitals and clinics to purchase outpatient prescription drugs at significant discounts from manufacturers. This program, designed to support providers serving low-income and uninsured patients, is funded not by direct federal subsidies but by mandatory discounts as a condition of participation in Medicare and Medicaid. Over the past three decades, the program has expanded dramatically, with over half of U.S. hospitals now participating and discounted purchases reaching $81.4 billion in 2024, leading to controversy over hospital margins and drug pricing. AI
