Al Sharpton, founder and president of the National Action Network, said on May 22 that the federal 340B Drug Pricing Program has become a profit center for hospital systems and chain pharmacies rather than a safety net for low-income patients, as similar oversight debates over 340B grow in GA.
“Originally created as a safety net, 340B has instead become a profit net for conglomerate hospital systems and national chain pharmacies,” Sharpton wrote in a New York Daily News op-ed. He called on legislators to “close the loopholes, demand transparency and ensure 100% of 340B savings are used to serve the neediest patients, not pad balance sheets.”
The 340B program requires drug manufacturers to sell outpatient drugs at discounted prices to eligible safety-net hospitals and clinics. It was designed to help providers serving low-income and uninsured patients stretch limited resources, but the program does not require discounts to be passed directly to patients or savings to be used for specific services. Peer-reviewed commentary has raised concerns about limited transparency, rapid program growth, contract pharmacy expansion, and whether savings consistently translate into measurable patient benefit.
According to AIR340B, Georgia 340B hospitals hold 1,072 contracts with 340B pharmacies, 61 percent of which are located outside the state. Augusta University Medical Center alone holds 120 such contracts, 57 percent with out-of-state pharmacies, while Northside Hospital earned annual profits of 134 million dollars while participating in the program.
The topic has drawn attention from policymakers. At an October 2025 Senate HELP Committee hearing, Chairman Bill Cassidy said the 340B program had “ballooned with limited oversight,” raising questions about how revenue is used and whether it directly benefits low-income patients. Cassidy said program growth is tied to higher health care costs, and pointed to concerns involving contract pharmacies, hospital consolidation, duplicate discounts, and weak transparency requirements.
Al Sharpton is the founder and president of the National Action Network, a civil rights organization headquartered in New York that operates more than 100 chapters across the country. He has focused on health care access, transparency, and economic equity issues affecting low-income communities.
