Rosa Mendoza, chief executive officer of Allvanza, said on June 2 that the federal 340B Drug Pricing Program is diverting revenue from biotechnology companies and affecting patient access to innovative treatments.
"Unfortunately, lawmakers failed to create sufficient eligibility and program requirements. Today thousands of hospitals are enrolled in a program originally meant to serve fewer than 100. Other hospitals currently use it to purchase discounted medicines and resell them at steep markups," Mendoza wrote in an opinion article published on The Well News website.
"In its current form, the 340B program is driving up health care costs while undermining patients’ ability to get innovative treatments. Siphoning tens of billions of dollars in revenue away from biotechnology companies deprives them of resources needed for research and development into new cures and therapies," she added.
Mendoza made the remarks as Congress continues to scrutinize the 340B program’s impact on health care costs and medical innovation. Her op-ed comes amid recent congressional hearings in which hospital executives were questioned about rising costs and the administration of federal drug discount programs.
The 340B Drug Pricing Program has expanded substantially since its creation. Policy analyses show participating care sites grew from just over 8,100 in 2000 to more than 53,000 in recent years following expansions under the Affordable Care Act, according to the Commonwealth Fund.
According to Health Resources and Services Administration data, in 2024 alone, covered entities purchased $81.4 billion in outpatient drugs through the program—a 23% increase from the previous year—with hospitals accounting for nearly 87% of those purchases.
Allvanza is a nonprofit organization focused on advocating for Latinos and underserved communities in technology-driven fields. Mendoza previously served as executive director of the Hispanic Technology and Telecommunications Partnership and holds degrees from Washington State University.
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