A new policy paper from ADAP Advocacy raises critical concerns about the 340B Drug Pricing Program, drawing parallels between its current trajectory and the unregulated financial markets preceding the 2008 economic collapse. The report, titled "Is the 340B Drug Pricing Program the Next 'Too Big to Fail'?", argues that the program's explosive growth has occurred without meaningful federal oversight.
The analysis highlights significant governance issues within the Health Resources Service Administration (HRSA), suggesting the agency has been ineffective in addressing program vulnerabilities. Specifically, the paper criticizes HRSA's slow response to potential problems such as duplicative Medicaid discounts and drug diversion through contract pharmacies.
Key concerns include declining charity care from hospitals benefiting from the program and the growing medical debt crisis affecting patients. ADAP Advocacy suggests that while the 340B Program is crucial to healthcare delivery, its current structure threatens its long-term sustainability.
The organization draws stark comparisons to the 2008 financial crisis, arguing that without proactive intervention, the program risks systemic failure. Brandon M. Macsata, ADAP Advocacy's CEO, emphasized that HRSA's oversight has been as ineffective as the SEC's approach to financial regulation prior to the economic downturn.
The policy paper serves as a critical call for comprehensive reform, underscoring the program's importance to healthcare access while demanding increased accountability and transparency from participating institutions.
