New Report Shows 340B Profits Often Exceed Charity Care Spending for Disproportionate Share Hospitals
WASHINGTON, March 28, 2024 /PRNewswire/ -- The Alliance for Integrity and Reform of 340B (AIR340B) today released a new report, DSH Hospitals' 340B Profit Often Exceeds Charity Care Spending, which analyzed the latest data on hospital charity care and found that 85% of disproportionate share hospitals (DSH) earn more in 340B profit than they spend on charity care.
- WASHINGTON, March 28, 2024 /PRNewswire/ -- The Alliance for Integrity and Reform of 340B (AIR340B) today released a new report, DSH Hospitals' 340B Profit Often Exceeds Charity Care Spending , which analyzed the latest data on hospital charity care and found that 85% of disproportionate share hospitals (DSH) earn more in 340B profit than they spend on charity care.
- Critically, DSH hospitals often receive reimbursement from patients and their insurers that exceeds the discounted 340B price, with hospitals keeping this "340B profit."
- This new report highlights that despite explosive growth in the number of 340B covered entities, amount of 340B drug purchases, and 340B profits, 340B hospitals continue to provide low levels of charity care compared to the profits they generate.
- The report calls out the following key data:
In 2022 alone, DSH hospitals earned $44 billion in 340B profit but spent only $18 billion – just 42% of those 340B profits – on charity care.