Luke Gale, Revenue Cycle Editor for HealthLeaders Media, said that some critics argue hospitals are requesting 340B drug discounts without adequate transparency, referencing well-documented abuses of the program. The statement was made in an analysis.
“Hospitals are taking a ‘just trust me’ approach to requesting 340B discounts on medicines despite well-documented abuses,” said Gale.
Established in 1992 and administered by the Health Resources and Services Administration (HRSA), the 340B Drug Pricing Program was created to help healthcare providers stretch limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices. These savings are intended to support access to care for low-income and uninsured patients.
According to the Government Accountability Office, hospitals participating in the 340B program can reinvest savings into services such as medication assistance, expanded care access, and community outreach. However, there is no federal requirement that hospitals report how they use 340B revenue. This lack of transparency has raised concerns over whether savings are consistently used to benefit low-income patients.
Pharmaceutical Research and Manufacturers of America (PhRMA) reported that Georgia’s 340B program includes 57 participating hospitals, which maintain 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 the program’s alignment with its original intent of supporting vulnerable populations.
Gale has been the Revenue Cycle Editor at HealthLeaders Media since February 2025, covering financial, policy, and regulatory topics in healthcare. He previously worked as a communications consultant and freelance copywriter for organizations such as Blue Cross Blue Shield of Massachusetts, MetLife, and the American Hospital Association.
