Jennifer Riley, Executive Director of Patients Come First Pennsylvania, has raised concerns over the use of the 340B Drug Pricing Program by large hospital systems. She argues that these systems are exploiting the program and calls for Congress to restore its original intent to support vulnerable patients. Riley’s statement was made in an op-ed.
“Large hospital systems, not bound by the same level of accountability, have taken advantage of the program’s lack of transparency,” said Riley. “Well-funded hospitals can purchase drugs at steep discounts, bill patients or insurers full price, and pocket the difference. If 340B savings continue to be siphoned away from true safety-net providers, the consequences for vulnerable Pennsylvanians could be devastating. Congress must act now to restore the integrity of the 340B program.”
The 340B Drug Pricing Program, established in 1992, aims to enable eligible safety-net hospitals and clinics to purchase outpatient medications at significant discounts. According to the Association of American Medical Colleges, the program’s purpose is to help healthcare organizations stretch limited federal resources to serve more patients, particularly those who are uninsured or underinsured. The program is widely regarded as a crucial support system for vulnerable communities by allowing expanded access to affordable medications.
Recent analysis indicates that the 340B Drug Pricing Program accounted for $54 billion in discounted drug purchases in 2022, an increase from $44 billion in 2021 and just $9 billion in 2014. The Drug Channels Institute reports that this growth is largely driven by increased hospital participation, with hospitals now dominating most contract pharmacy arrangements. The program constitutes more than 16% of the total U.S. drug market, underscoring its significant role in prescription drug distribution.
According to PhRMA (Pharmaceutical Research and Manufacturers of America), 25 hospitals in New Jersey participate in the 340B program, holding 547 contracts with pharmacies nationwide. Of these contract pharmacies, only 18% are located in medically underserved areas, potentially affecting the program’s intended impact. Additionally, 16% of participating hospitals in New Jersey provide charity care at levels below the national average.
Riley serves as Executive Director of Patients Come First Pennsylvania and has a two-decade career dedicated to advocacy at local, state, and national levels. She is recognized for her strategic leadership and considered one of Pennsylvania’s most influential women in public service, business, and nonprofit sectors. Her work focuses on removing barriers to patient well-being and advancing access to care for underserved communities.
