Where Do All the 340B Savings Go?

Hospitals take nearly 90% of the $44 billion in discounted drugs through the 340B program

According to figures from the Health Resources and Services Administration, hospitals are the single largest source of claims for discounted prescription drugs in the 340B program. In 2021, discounted purchases totaled $43.9 billion – a record sum that is over 15% higher than in 2020. Hospitals accounted for 87% of the total share of purchases.

Unlike community health centers and other federal grantees, these entities are not required to reinvest the savings from discounted drugs back into patient care. Instead, they are free to spend their 340B profits in ways that don’t benefit patients as documented in our recent fact sheet.

Solutions are needed to ensure underserved patients see the full benefit of these discounts. Implementing ASAP 340B’s ten policy principles will help ensure they do.