A recent supplemental report by ADAP Advocacy, in collaboration with the Community Access National Network (CANN), sheds light on the 340B Drug Pricing Program's impact on covered entities' financial practices. The findings indicate a stark disparity between the growth in annual revenues and executive compensation versus the provision of charity care. According to the report, annual revenues among the audited entities surged by an average of 772.92%, with executive compensation rising by 237.11%. In contrast, charity care as a percentage of annual revenues declined by 34.80%.
Brandon M. Macsata, CEO of ADAP Advocacy, criticized the current state of the 340B Program, emphasizing the need to prioritize patient benefits over provider gains. The report scrutinized 33 covered entities, including hospitals, sexually transmitted disease clinics, and HRSA-funded health centers, revealing instances where executives received pay increases exceeding 1,000% while patients faced copayment reimbursements issues.
The implications of these findings are significant, highlighting potential misalignments in the program's objectives versus its outcomes. The 340B Program, designed to help vulnerable populations access affordable medications, appears to be benefiting covered entities disproportionately. For more details, the report is available for download here.
