Jennifer Riley, Executive Director of Patients Come First Pennsylvania, has expressed concerns over the exploitation of the 340B Drug Pricing Program by large hospital systems. She urged Congress to restore the program’s original intent to support vulnerable patients. Riley made these remarks in an op-ed.
“Large hospital systems, not bound by the same level of accountability, have taken advantage of the program’s lack of transparency,” said Riley. “Well-funded hospitals can purchase drugs at steep discounts, bill patients or insurers full price, and pocket the difference. If 340B savings continue to be siphoned away from true safety-net providers, the consequences for vulnerable Pennsylvanians could be devastating. Congress must act now to restore the integrity of the 340B program.”
The 340B Drug Pricing Program was established in 1992 to allow eligible safety-net hospitals and clinics to purchase outpatient medications at significant discounts. According to the Association of American Medical Colleges, the program aims to help healthcare organizations stretch limited federal resources to serve more patients, particularly those who are uninsured or underinsured. The program is considered crucial for vulnerable communities as it expands access to affordable medications.
Recent analysis indicates that the 340B Drug Pricing Program reached $54 billion in discounted drug purchases in 2022, up from $44 billion in 2021 and just $9 billion in 2014. The Drug Channels Institute reports that this growth is primarily driven by increased hospital participation, with hospitals now dominating most contract pharmacy arrangements. The program now accounts for more than 16% of the total U.S. drug market, underscoring its significant impact on prescription drug distribution.
According to PhRMA (Pharmaceutical Research and Manufacturers of America), Georgia’s 340B program includes 57 participating hospitals with over 1,000 contracts with pharmacies nationwide. However, only a small proportion of these contract pharmacies are located in medically underserved areas, raising concerns about the program’s effectiveness in reaching its intended beneficiaries. Additionally, a significant share of participating hospitals in Georgia provide charity care below the national average, further questioning whether the program aligns with its original goal of supporting vulnerable populations.
Riley has a two-decade career dedicated to advocacy at local, state, and national levels. She is recognized for her strategic leadership and is regarded as one of Pennsylvania’s most influential women in public service, business, and nonprofit sectors. Her work focuses on removing barriers to patient well-being and advancing access to care for underserved communities.
