David Balto, a former policy director at the Federal Trade Commission (FTC), has expressed concerns over proposed legislation that he believes would increase hospital profits by allowing further misuse of the 340B Drug Pricing Program. Balto’s statement was made on the social media platform X.
“Legislation to increase big hospital profits at expense of patients through abuse of the 340B program is on Governor’s desk,” said Balto.
According to the Government Accountability Office, the 340B Drug Pricing Program was established in 1992 to enable certain healthcare providers to purchase outpatient drugs at discounted rates, thereby extending federal resources. In recent years, there has been a significant increase in hospital and pharmacy participation in 340B contracts. Critics argue that this expansion has diverted the program from its original mission.
A study published in 2024 in the Journal of Managed Care & Specialty Pharmacy highlighted that 340B contract pharmacy arrangements expanded from 1,300 in 2010 to over 60,000 by 2022. The study noted a lack of sufficient evidence showing direct benefits to patients from these arrangements and called for increased transparency regarding the program’s financial flows.
Furthermore, a report by PhRMA (Pharmaceutical Research and Manufacturers of America) in 2025 indicated that hospitals in Georgia earned over $1 billion from drugs discounted under the 340B program. However, it found limited evidence that these savings were utilized to support uninsured or low-income patients. Concerns were raised about the transparency concerning how the program’s benefits are allocated.
Balto is a former FTC policy director with experience in healthcare, antitrust, and competition issues. He also held positions at the U.S. Department of Justice and currently leads David Balto Law Offices, which focuses on consumer protection and healthcare competition.
