The 340B Drug Pricing Program and Its Potential Impacts on Annual Revenues, Executive Compensation, and Charity Care Provision in Eligible Covered Entities
WASHINGTON, DC, March 04, 2025 /24-7PressRelease/ -- ADAP Advocacy today, as part of its 340B Project and in collaboration with the Community Access National Network (CANN), published a supplemental report on the 340B Drug Pricing Program and its impact on covered entities' executive compensation. The report – "The 340B Drug Pricing Program and its Potential Impacts on Annual Revenues, Executive Compensation, and Charity Care Provision in Eligible Covered Entities–Supplemental Report" – found that among the 33 covered entities audited their annual revenues increased by an average of 772.92%, while executive compensation increased by an average of 237.11%.
Brandon M. Macsata, CEO of ADAP Advocacy, summarized: "Today, patients living with HIV can successfully access highly effective therapies to manage the disease and achieve undetectable status, thus making a robust 340B Program essential. Unfortunately, that concept has warped into putting providers before patients. It makes no sense that patients aren't reimbursed for the copayment made at the pharmacy counter, while in some instances, executives receive 1,000% or more pay increases. It is even more troubling to see hospitals reaping the benefits of this lucrative program as their provision of charity care as a percentage of annual revenues decreased by 34.80%."
The audit of the 340B-eligible covered entities included 15 Hospitals, 3 Sexually Transmitted Disease Clinics, and 15 HRSA-funded health Centers. The report can be downloaded here: https://tinyurl.com/bde4jsef.
To learn more about ADAP Advocacy, 340B Drug Pricing Program, or the 340B Executive Compensation Report, please email info@adapadvocacy.org.
About ADAP Advocacy: ADAP Advocacy's mission is to promote and enhance the AIDS Drug Assistance Programs (ADAPs) and improves access to care for persons living with HIV/AIDS. ADAP Advocacy works with advocates, community, health care, government, patients, pharmaceutical companies, and other stakeholders to raise awareness, offer patient educational programs, and foster greater community collaboration.
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