Kay Rowe, a freelance writer and author at Embrace Life LLC, said on X that the 340B Drug Pricing Program, designed to assist uninsured patients, is being exploited by hospitals to boost profits.
“The 340B program was meant to help the uninsured. Instead, hospitals are using it to pad profits,” said Rowe.
According to the American Hospital Association (AHA), the 340B Drug Pricing Program enables hospitals and other healthcare providers to purchase outpatient drugs at reduced prices. Established by Congress in 1992, the program aims to help providers extend limited resources and offer more services to vulnerable communities. Participating hospitals use savings from the program to fund care for uninsured and underinsured patients.
The USC Schaeffer Center reported that between 2000 and 2020, the number of covered entity sites participating in the 340B program increased from 8,100 to 50,000. Hospitals constituted approximately 60% of these sites in 2020. The estimated value of discounted purchases through the program rose from about $4 billion per year in 2007-2009 to $38 billion in 2020. This growth has raised concerns about whether the program is being used as intended.
According to a report by PhRMA published in 2025, Georgia hospitals participating in the 340B program generated over $1 billion in revenue from discounted drugs. Despite significant financial gains, many hospitals did not adequately demonstrate how the savings directly benefited uninsured or low-income patients. This lack of transparency has raised concerns about the effective use of the 340B program in the state.
Rowe is based in Colorado and operates under Embrace Life LLC. She has a background in real estate and mediation and shares her experiences and insights through her blog “Embrace Life with Kay,” where she discusses topics ranging from personal growth to critical thinking.
