Empire State Today

The head of the Community Liver Alliance (CLA) said this week that the federal 340b drug discount program has “gone astray” from its original mission, citing the number of New Y work 340b hospitals located in “underserved” communities.

“In 1992, Congress created the 340B Drug Pricing Program to address this problem of affordability and inequity,” Suzanna Masartis, CEO of the CLA, wrote in a USA Today op-ed. “This program, which allowed eligible healthcare entities such as hospitals and safety-net clinics, to purchase prescription drugs from manufacturers at significantly reduced prices, had the noble goal of making medications more affordable for vulnerable populations.”

“Despite these good intentions, the 340B program has gone astray in fulfilling the promise of enhancing healthcare access and equity for underserved communities.”

Established in 1992 and administered by the Health Resources and Services Administration (HRSA) the program aims to provide financial relief to healthcare providers serving vulnerable populations, allowing them to stretch their scarce resources and reach more eligible patients.

Hospitals participating in the 340B program can use the savings to fund essential services and programs, such as free or low-cost medication assistance, expanded access to healthcare, and community outreach initiatives.

Participating hospitals, however, “often extend their 340B discounts to clinics in well-off communities, where they can charge privately insured patients more than those on Medicaid,” reported the Wall Street Journal.

In New York, wrote Masartis, “there are 113 hospitals with the 340B designation, and 86% of them are below the national average in the amount of charity care they provide.”

“Given that the 340B program is the second largest prescription drug program in the nation, with the intent of providing prescription medications at discounted rates to communities in need, the lack of assistance going back to vulnerable individuals is unacceptable,” she wrote.

The CLA is a nonprofit organization focused on liver disease awareness, education, and advocacy. Based in Pennsylvania, it collaborates with healthcare professionals and researchers to host events, fund research, and provide resources. Its programs include support groups, educational initiatives, and fundraising efforts.