Pioneer Institute: 340B Hospitals Does Not Necessarily Translate to Charity Care

Review of Becker’s List of Health Systems with Strong Finances finds  more transparency needed in hospitals that receive federal aid to improve access to care.

(Boston, Mass) – Pioneer Institute of Public Policy Research today released a paper that found that higher levels of transparency in hospital operations is needed in hospitals that receive federal aid to improve access to care. 

The Institute selected names for the hospitals from the Becker’s List of Health Systems with Strong Finances, and compared it to data of the hospitals falling under 340B classifications in Pioneer’s 340B Data Tool. 

Of the 53 hospitals originally listed in Becker’s, 29 are classified as 340B hospitals/health systems. Of those 29, 18 health systems underperformed the national average of 2.28 percent of operating expenses for charity care during 2022, the most recent year for which data are available. 

This evidence calls into question where hospitals are spending the money they save from drug price discounts they receive. 

Hospitals that receive 340B drug discounts should ensure they are funding it going to improve patient care.

To see the Becker’s list, click here.