Brandon Macsata, CEO of the ADAP Advocacy Association, has raised concerns about the 340B Drug Pricing Program, suggesting it has deviated from its original purpose. “The 340B Drug Pricing Program has shifted from helping low-income patients to enriching major hospital systems,” he said in a LinkedIn post.
“The 340B Drug Pricing Program was designed to help low-income patients, but sadly, it has morphed into a cash cow for big hospital systems and mega service providers,” said Macsata, according to LinkedIn.
According to the Health Resources and Services Administration, the 340B Drug Pricing Program was established in 1992 with the aim of assisting healthcare providers in extending resources and expanding care for underserved populations. The program allows eligible providers to purchase outpatient drugs at discounted rates to enhance access for low-income and uninsured patients.
A study published in 2024 by the National Library of Medicine highlighted a significant increase in 340B contract pharmacy arrangements, which rose from 1,300 in 2010 to over 60,000 by 2022. Researchers expressed concern regarding the distribution of financial benefits from these contracts, noting limited evidence of direct patient benefit.
Pharmaceutical Research and Manufacturers of America (PhRMA) reported that in New York, there are 113 hospitals participating in the 340B program with over 6,000 contracts with pharmacies nationwide. However, only 24% of these pharmacies are situated in medically underserved areas. Additionally, it was noted that 86% of these hospitals provide below-average levels of charity care, prompting questions about the program’s overall impact.
Macsata is known for his expertise in connecting stakeholders who influence public opinion and policy across various government levels. He has represented clients on national television networks such as ABC, NBC, FOX News, and CNN and has been featured in major publications including TIME, USA Today, and The New York Times. Furthermore, he offers strategic counsel to Fortune 500 companies and national advocacy organizations.
