Jung Hoon Son, M.D., Head of Clinical Informatics at Trellis Health, has called for healthcare reform efforts to focus on pharmacy benefit managers (PBMs), 340B program abuse, hospital inefficiencies, and targeted fraud rather than placing broad blame. Son made this statement on LinkedIn.
"Point blame at the right people," said Hoon Son. "PBMs. Abuse of 340B (well-intended program before mega-hospitals abused it) For our national's 'leaders' to just blanket blame is just nonsensical."
According to the U.S. Government Accountability Office (GAO), the 340B Drug Pricing Program was established in 1992 to enable eligible healthcare organizations to buy outpatient drugs at discounted rates to assist vulnerable populations. Concerns have arisen that large hospital systems might be exploiting the program for revenue without directly aiding patients in need.
The Health Resources and Services Administration (HRSA) reported that purchases through the 340B program reached $53.7 billion in 2022, a significant increase from $9 billion in 2010. This rapid growth has sparked debate over whether the program’s original intent is being upheld.
A report from the Berkeley Research Group in 2023 found that 340B hospitals accounted for 76% of all drug purchases under the program. Many of these hospitals were situated in wealthier areas, prompting questions about the equitable distribution of program benefits.
Son is a biomedical informaticist, pathologist, and data scientist who currently leads Clinical Informatics at Trellis Health. He has previously held positions at AbbVie, Cerevel Therapeutics, and PulseData AI and completed a National Library of Medicine fellowship at Columbia University.
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