ADAP Advocacy has released a two-part infographic series examining executive compensation practices among hospital CEOs participating in the 340B Drug Pricing Program. The organization's 340B Project documents how manufacturer rebates intended to support healthcare access for low-income patients are instead funding substantial compensation packages for hospital executives.
The '340B Too Big to Fail – Executive Compensation – Part 1' infographic focuses on the significant pay gap between hospital CEOs and frontline nurses, while emphasizing that the 340B Drug Pricing Program was originally designed to help poor patients access essential healthcare services. Despite the program's growth to $66 billion in scale, ADAP Advocacy's research indicates these funds are being diverted to support excessive executive compensation rather than their intended purpose of patient care.
The second infographic, '340B Too Big to Fail – Executive Compensation – Part 2,' demonstrates how CEO compensation has increased exponentially after hospitals became eligible to participate in the 340B Program. This trend raises questions about whether the program is achieving its original mission or has become a source of revenue that benefits hospital administration rather than patients in need.
These findings are part of ADAP Advocacy's broader national advocacy campaign questioning whether the 340B Drug Pricing Program has become 'too big to fail.' The organization emphasizes that the program was not designed to enrich healthcare executives but rather to ensure vulnerable populations can access necessary medications and healthcare services.
The complete two-part infographic series is available for download at https://www.adapadvocacy.org/publications.html#i. This research comes at a critical time as policymakers and healthcare advocates examine the effectiveness and proper administration of the 340B Program, which plays a vital role in supporting safety-net healthcare providers and the patients they serve.
