Academic Literature

The 340B Program: Hospitals Profit by Reaching Affluent Communities

The 340B program is being converted from one that serves vulnerable patient populations to one that enriches hospitals and their affiliated clinics.

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Originally published on 10/01/2014 in Health Affairs

The 340B program's original intent was to help low-income and uninsured patients.

However, the program has come under scrutiny by critics who contend that some hospitals exploit the drug discounts to generate profits rather than investing in programs to help the poor or passing along savings to patients and insurers. We examine the effects of the program, finding that 340B hospitals registered after 2004 serve wealthier communities with higher rates of insurance relative to those registered prior to 2004.

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