ADAP Advocacy Infographic Highlights Declining Hospital Charity Care and $220 Billion Medical Debt Crisis

ADAP Advocacy has released an infographic examining declining charity care by hospitals participating in the 340B Drug Pricing Program, revealing that patients owe at least $220 billion in medical debt with nearly 75% owed directly to hospitals. The infographic, part of the organization's 340B Project and national advocacy campaign "Is the 340B Drug Pricing Program the Next 'Too Big to Fail'?" focuses on how reduced charity care disproportionately affects minority communities, particularly Black and Hispanic patients.

The "340B Too Big to Fail – Charity Care" infographic analyzes hospital requirements to provide free care and financial assistance to low-income patients, documenting a consistent year-over-year decline in such assistance. This trend occurs despite hospitals receiving significant benefits through the 340B program, which allows qualifying healthcare organizations to purchase outpatient drugs at discounted prices. The program was originally designed to help safety-net providers stretch federal resources to serve more patients and provide more comprehensive services.

The $220 billion in outstanding medical debt represents a significant barrier to healthcare access, with hospitals holding the majority of this debt. The infographic can be accessed through ADAP Advocacy's publications page at https://www.adapadvocacy.org/publications.html#i. This release complements the organization's recently published commercial materials and forms part of their broader advocacy efforts surrounding the 340B program.

ADAP Advocacy's mission focuses on promoting and enhancing AIDS Drug Assistance Programs (ADAPs) and improving healthcare access for people living with HIV/AIDS. The organization collaborates with advocates, community organizations, healthcare providers, government agencies, patients, pharmaceutical companies, and other stakeholders to raise awareness, provide patient education, and foster community collaboration around healthcare access issues.

The declining charity care documented in the infographic raises important questions about whether hospitals are fulfilling their obligations under the 340B program, which requires participating organizations to use program savings to benefit vulnerable patient populations. With medical debt reaching crisis levels and disproportionately affecting minority communities, this issue has significant implications for healthcare equity and access nationwide. The data suggests systemic failures in how safety-net programs are implemented and monitored, potentially undermining the original intent of the 340B program to support underserved populations.