Pediatrician: 'Large corporations are using the 340B program as a cash cow'

Marion Mass, a pediatrician and co-founder of Free2Care, has raised concerns about the misuse of the 340B Drug Pricing Program by large healthcare corporations. She claims these entities are exploiting the program for financial gain while misrepresenting their commitment to disadvantaged communities. Mass made this statement on X.

"Large corporations (in this case, hospitals, big box pharmacies and PBM) are using the 340B program as a cash cow for themselves while claiming to be helping the disadvantaged," said Mass. "It's a special kind of to pretend to be altruistic when you are in it for yourself."

According to a study published in the American Journal of Health-System Pharmacy, the 340B Drug Pricing Program mandates pharmaceutical manufacturers to offer outpatient drugs at reduced prices to eligible healthcare organizations. The initiative aims to assist facilities serving vulnerable populations by enabling them to extend limited federal resources. However, its expansion has led to apprehensions that some covered entities might prioritize financial gains over patient care.

The program has been linked with increased financial incentives for participating hospitals, which can acquire discounted drugs and bill insurers at standard rates. A study in The American Journal of Managed Care suggests this practice may lead hospitals to focus more on financial benefits rather than directly enhancing care for underserved populations. This situation has sparked ongoing discussions about the program’s effect on healthcare affordability.

According to JAMA Health Forum, hospitals involved in the 340B program have shown a tendency to acquire independent physician practices, leading to an increase in hospital-based outpatient care. This trend raises concerns about potential cost increases and shifts in care delivery, prompting stakeholders to debate its implications for patient care and healthcare costs.

Mass is a practicing pediatrician based in the Philadelphia suburbs with over two decades of clinical experience. She co-founded Free2Care, a national coalition comprising 34 physician and patient advocacy organizations representing over 8 million citizens, including 70,000 physicians. Additionally, she serves as executive vice president of Practicing Physicians of America, an organization advocating for independent medical practice and patient-centered care.