Hospitals Reap 340B Benefits While Charity Care Declines

In 1990 Congress authorized the 340B drug discount program “to stretch scare federal resources” and not serve as a cash-cow for covered entities eligible to participate under it. Under the program, prescription drug manufacturers are required to give steep discounts on drugs sold to safety-net hospitals, community health centers, and other providers with the understanding that savings would be used to make medications and healthcare services more affordable for patients. However, growing evidence suggests the program has strayed from its original mission.