ADAP Advocacy Report Highlights Surge in 340B Program Revenues and Executive Compensation
TL;DR
The 340B Drug Pricing Program has led to an average 824.32% increase in annual revenues, giving covered entities a significant financial advantage.
ADAP Advocacy's report analyzed IRS 990 filings for 69 340B-eligible covered entities to determine the impact on annual revenues and executive compensation.
The 340B Program's increase in annual revenues and executive compensation highlights the need to refocus on its original intent of helping patients and providing charity care.
ADAP Advocacy's report sheds light on the significant financial impact of the 340B Drug Pricing Program, revealing the program's priorities and their impact.
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ADAP Advocacy, in collaboration with the Community Access National Network (CANN), has published a detailed report on the 340B Drug Pricing Program and its effects on covered entities' executive compensation. The report, titled "The 340B Drug Pricing Program and its Potential Impacts on Annual Revenues, Executive Compensation, and Charity Care Provision in Eligible Covered Entities", reveals that annual revenues for these entities increased by an average of 824.32%, while executive compensation grew by 231.51%.
Brandon M. Macsata, CEO of ADAP Advocacy, commented, "It is no wonder that hospitals and mega service providers are fighting so hard to stop reforms to the 340B Program…because it is a cash cow for their organizations' bank accounts and their CEOs' wallets. What is even more troubling is for hospitals, their charity care levels have dropped precipitously over time. It is reflective of a larger problem with the program in that its priorities are out of whack, and we need to return 340B to its original legislative intent: helping patients!"
ADAP Advocacy's analysis utilized publicly available IRS 990 filings from 69 340B-eligible entities, which included 24 HIV Care providers, 38 hospitals, and 7 other entity types. The examination covered annual revenues, executive compensation, and charity care provision both before and after the entities became eligible for the 340B program.
The findings raise critical questions about the current administration of the 340B program, particularly in light of the diminishing levels of charity care provided by hospitals. This report underscores the need for reforms to realign the program with its original goal of aiding patients.
Curated from 24-7 Press Release
