Mark Storey, Radiation Oncologist at the Oklahoma Proton Center, said the 340B Drug Pricing Program is being used by large institutions to suppress competition and should be reviewed at the federal level. The statement was made on X.
“340b used to be a good program,” said Storey. “In rural places – maybe still on balance at times. But often it is used as a consolidation tool by large institutions to kill competition in the market. Needs to be addressed at fed level”
According to 340B Health, the 340B Drug Pricing Program was established by Congress in 1992 to allow eligible healthcare providers to purchase outpatient drugs at significantly reduced prices. The program enables covered entities to stretch limited federal resources and serve vulnerable populations. Eligible entities include certain hospitals, community health centers, and specialized clinics.
A 2024 report by the National Alliance of Healthcare Purchaser Coalitions found that prices at large 340B hospitals were 35% higher on average for common outpatient services compared to non-340B hospitals. The report estimated an additional $36 billion in annual healthcare costs for employers. These results were based on claims data from over 25 million workers and their families.
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.
Dr. Mark R. Storey is a board-certified radiation oncologist at the Oklahoma Proton Center, where he specializes in proton therapy for treating various cancers. He has extensive experience in the field and is committed to improving patient outcomes through advanced radiation treatment options. He completed his residency at MD Anderson Cancer Center.
