Jeanette Hoffman, Executive Director of Patients Come First New Jersey, said that the 340B program is exploited by hospitals and fails to benefit patients as intended. This statement was made in a press release.
“A little-known, controversial federal drug program named the 340B Drug Pricing Program is making national headlines for its impact on raising prescription drug prices on the vulnerable patients it was intended to benefit,” said Hoffman. “In fact, at least 26 Garden State hospitals participate in this safety-net drug program, yet 16% of New Jersey 340B hospitals provide below the national average for charity care. Due to the program’s lack of transparency and oversight, large players in the health care system take advantage of 340B without passing the savings along to the patients. With so much evidence that many patients never see the benefits of 340B and that it drives up costs, this program needs serious reforms to ensure patients come first.”
The federal 340B Drug Pricing Program has become controversial in New Jersey, where hospitals are accused of benefiting from discounts without passing savings on to low-income patients. According to NJ Spotlight News, watchdogs found that 340B hospitals in the state earned about 1.4 times more from the program than they spent on charity care, sparking concerns over transparency. The debate has intensified as courts weigh charity care obligations and policymakers question whether the program fulfills its original intent.
New Jersey has 25 hospitals participating in the 340B program, supported by 547 hospital–pharmacy contracts across the state. According to PhRMA’s 2024 New Jersey state profile, 16 percent of 340B hospitals in the state provide below-average charity care compared to national levels. The report also found that only 18 percent of contract pharmacies are located in medically underserved areas, raising concerns about whether program benefits reach intended communities.
Nationally, the 340B program has grown dramatically since 2010, with contract pharmacies increasing by over 8,000 percent and discounted purchases reaching $54 billion in 2022. According to PhRMA’s 2024 analysis, spending rose 23 percent in just one year, yet many nonprofit hospitals spent less on charity care than the value of their tax breaks. This disparity has fueled criticism that program expansion has not aligned with improved patient assistance.
Hoffman is the Executive Director of Patients Come First New Jersey, a role she took on after more than two decades in public affairs, politics, and media strategy. According to Patients Come First, Hoffman has extensive experience in crisis communications and issue advocacy and now leads the group’s state-level efforts to advance patient-focused policies. Her leadership emphasizes ensuring that the needs of patients remain central to health care debates.
Patients Come First New Jersey is a state chapter of the national Patients Come First network, which advocates for patient-centered care through education, advocacy, and policy engagement. According to the group’s website, the New Jersey branch launched in 2024 to focus on local health care issues, including drug pricing transparency and patient access. Its broader mission is to remove barriers to innovation while prioritizing science-driven treatment options.
