Jennifer Riley, Executive Director of Patients Come First Pennsylvania, has expressed concerns regarding the exploitation of the 340B Drug Pricing Program by large hospital systems. She said that Congress must take action to restore the program’s original intent, which is to support vulnerable patients. This statement was made in an op-ed.
“Large hospital systems, not bound by the same level of accountability, have taken advantage of the program’s lack of transparency,” said Riley. “Well-funded hospitals can purchase drugs at steep discounts, bill patients or insurers full price, and pocket the difference. If 340B savings continue to be siphoned away from true safety-net providers, the consequences for vulnerable Pennsylvanians could be devastating. Congress must act now to restore the integrity of the 340B program.”
The 340B Drug Pricing Program, established in 1992, allows eligible safety-net hospitals and clinics to purchase outpatient medications at discounted rates. According to the Association of American Medical Colleges, the program aims to help healthcare organizations maximize limited federal resources to serve more patients, particularly those who are uninsured or underinsured. The program is considered crucial for vulnerable communities as it provides expanded access to affordable medications.
Recent analysis indicates that the 340B Drug Pricing Program reached $54 billion in discounted drug purchases in 2022, a significant increase from $44 billion in 2021 and $9 billion in 2014. The Drug Channels Institute attributes this growth largely to increased hospital participation, with hospitals now playing a dominant role in contract pharmacy arrangements. The program accounts for over 16% of the total U.S. drug market, underscoring its substantial impact on prescription drug distribution.
According to a report from PhRMA (Pharmaceutical Research and Manufacturers of America), California’s 340B program has experienced notable growth. Hospitals in the state have formed numerous partnerships with pharmacies, with over 3,500 contracts existing between 340B hospitals and pharmacies as of 2025. Approximately 40% of these involve out-of-state pharmacies, prompting discussions about whether the program aligns with its original purpose.
Riley has dedicated two decades to advocacy at local, state, and national levels as Executive Director of Patients Come First Pennsylvania. She is recognized for her strategic leadership and is regarded as one of Pennsylvania’s most influential women across public service, business, and nonprofit sectors. Her work focuses on eliminating barriers to patient well-being and enhancing access to care for underserved communities.
