Shanyue Zeng, a data scientist at IQVIA, said that the 340B Drug Pricing Program benefits a broad set of entities, including hospitals and wholesalers, while increasing healthcare costs for employers, workers, and government payers. This statement was made in a journal article.
“Beneficiaries include 340B hospitals and clinics, their third-party administrators, national, for-profit pharmacy chains, pharmacy benefit managers and their affiliated specialty pharmacies, group purchasing organizations, and wholesalers, while the program has increased healthcare costs for employers, their workers, and payers, including state and local governments, as well as Medicare and Medicaid,” said Zeng.
According to the Association of American Medical Colleges (AAMC), the 340B Drug Pricing Program was established in 1992 to help safety-net providers stretch scarce federal resources and continue serving vulnerable communities. The program initially applied to a limited number of entities but has since seen substantial growth. AAMC notes that this expansion has prompted debates about oversight and mission alignment.
The U.S. Government Accountability Office (GAO) reported that the number of covered entities in the 340B program increased from approximately 8,100 in 2000 to over 50,000 by 2020. This includes a broad array of hospitals and contract pharmacies. The report raised questions about whether all participants are maintaining the program’s original safety-net purpose.
Pharmaceutical Research and Manufacturers of America (PhRMA) reported that in New York, 113 hospitals participate in the 340B program, holding over 6,000 contracts with pharmacies nationwide. However, only 24% of these contract pharmacies are located in medically underserved areas, and 86% of participating hospitals provide below-average levels of charity care. This disparity has raised concerns about the program’s effectiveness in reaching its intended beneficiaries within the state.
Zeng is a data scientist at IQVIA where she focuses on the 340B program, market access, and gross-to-net (GTN) strategy. She specializes in translating complex healthcare data into actionable insights for pharmaceutical clients navigating regulatory and pricing challenges. Her work combines analytics and artificial intelligence (AI) to support strategic healthcare decisions.
