PhRMA senior director on 340B program: 'Hospitals abuse the program to boost their profits at the expense of patients'

Brianna Allen, Senior Director of Public Affairs at the Pharmaceutical Research and Manufacturers of America (PhRMA), said that hospitals are exploiting the 340B program to increase their profits, adversely affecting patients, taxpayers, and employers by driving up medicine prices in the United States. This statement was made in a PhRMA blog.

"The little-known federal 340B program is a $66 billion program that lets big, tax-exempt hospitals and clinics buy medicines for as little as a penny and then markup the price by thousands of dollars," said Allen, Senior Director, Public Affairs. "Hospitals abuse the program to boost their profits at the expense of patients, taxpayers and employers. This program is leading to higher medicine prices in the U.S."

The 340B Drug Pricing Program, established in 1992, allows eligible healthcare providers to purchase outpatient drugs at reduced prices to serve vulnerable populations. While it is intended to support care for low-income and uninsured patients, concerns have been raised about program oversight and whether savings are reaching those most in need.

According to a 2024 study, the number of 340B contract pharmacy arrangements grew from 1,300 in 2010 to over 60,000 by 2022. Researchers noted a lack of evidence that patients directly benefit from the financial savings and emphasized the need for greater program transparency.

A study conducted by IQVIA in 2023 revealed that the 340B program accounted for 7.2% of the total U.S. drug market by volume. The report found that a large share of program discounts were retained by hospitals and contract pharmacies instead of being passed on to patients, with significant variation between institutions.

Allen is a Senior Director on PhRMA’s Public Affairs team, focusing on communications for Medicare, Medicaid, and medicine access. She previously worked as a communications advisor at the Food and Drug Administration (FDA) and as a director at FGS Global’s healthcare team. Her background includes journalism covering federal health policy for POLITICO.