Matt Toresco, CEO of Archo Advocacy, said on March 12 that Minnesota’s latest findings on the federal 340B drug pricing program show large hospital systems are generating significant revenue while most patients do not benefit directly. According to Toresco, the state’s transparency model reveals a need for reform so that 340B better serves its intended purpose.
The issue is important because the 340B program was designed to help safety-net providers use drug discounts to improve care for vulnerable populations. However, recent data suggest that much of the financial gain is concentrated among larger hospitals rather than being distributed across all provider types.
"MN 340B report: $1.34B in hospital profits, 80% to big hospitals. Most patients see no savings. Time for reform to ensure 340B helps those it was meant for? I think so!!!" Toresco said according to his social media post.
Minnesota’s 2025 legislative report found that covered entities generated about $1.34 billion in net 340B revenue in 2024. General acute care hospitals accounted for roughly $1.064 billion, or nearly 79% of the statewide total, even though multiple provider types participate in the program. The largest gains were concentrated among large hospital systems rather than spread evenly across safety-net providers.
The same report estimated that net 340B revenue by payer included approximately $608 million from commercial plans, $479 million from Medicare, and $261 million from Minnesota Health Care Programs. The data indicate that earnings extend beyond uncompensated care and include revenue from both insured patients and public programs.
A Government Accountability Office review found that only 30 out of 55 covered entities examined offered discounts to low-income, uninsured patients at some or all contract pharmacies—meaning nearly half did not report doing so. The review also noted contract pharmacy arrangements grew from about 1,300 in 2010 to nearly 20,000 in 2017, with pharmacies commonly paid per-prescription fees.
Toresco is listed as Founder, CEO, and Chief Product Officer of Archo Advocacy and Editor-in-Chief of Elavay: Patient Insights. His public bio describes his work as elevating patient voices through market research and advocacy-focused platforms—a perspective he brings when weighing whether the program is serving patients as intended.
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