Anish Koka, MD, a Philadelphia-based cardiologist, said the 340B program fails to help poor patients and instead fuels costly hospital projects, a concern drawing attention in New York. The announcement was made on X.
The 340B Drug Pricing Program was established by Congress in 1992 to help hospitals and clinics serving low-income patients buy outpatient drugs at discounted prices. It allows eligible providers to use the savings to improve access to care for underserved populations. However, critics argue that some hospitals profit from the program without passing benefits directly to patients.
According to JAMA Health Forum, hospitals participating in the 340B Drug Pricing Program reported a 37% higher net income than non-participating hospitals, driven largely by profits from discounted drugs rather than expanded services for low-income patients. This disparity has intensified calls for reform.
PhRMA reported that in New York, 113 hospitals are enrolled in the 340B program, holding upwards of 6,000 pharmacy contracts nationwide. Yet only 24% of these pharmacies are in medically underserved areas, and 86% of hospitals provide below-average charity care, fueling concerns that the program may not be effectively reaching its intended recipients.
Dr. Anish Koka is a board-certified cardiologist and the founder of Koka Cardiology PC, a private practice based in Philadelphia, Pennsylvania. He completed his Cardiology Fellowship at Jefferson Health after earning his Doctor of Medicine from Temple University’s Lewis Katz School of Medicine. With over 12 years in private practice, Dr. Koka is recognized for his clinical expertise and commentary on U.S. health policy and healthcare reform.
