Posted On: April 10, 2025 by Community HealthCare System in: News
The 340B Drug Pricing Program is funded by pharmaceutical manufacturers through an inflationary penalty when their prices are excessive. It is not funded with taxpayer dollars. In fact, 340B savings helps hospitals like CHCS from having to rely as heavily on local taxes for operational support. For the fiscal year ending March 2024, CHCS absorbed $971,537 of uncompensated care/bad debt expense and generated $520,469 in 340B savings. Without the 340B program, CHCS and other Kansas hospitals may need to request additional tax support from their communities.
The Kansas Hospital Association has provided financial statistics comparing Kansas hospitals to drug companies (2022 HANYS cost reports for Kansas hospitals and SEC 10-K filings) :
- In 2022, the top eight drug companies had net earnings of $99.4 billion compared to negative $18.2 million for combined Kansas 340B hospitals.
- In 2022, drug companies spent 20 percent of their revenue, or $10.6 billion, on advertising and only about 18 percent, or $9 billion on research and development.
- The average operating margin for the top eight drug companies was 22 percent or $12.5 billion. In comparison, the average operating margin for Kansas 340B hospitals was negative 3.4 percent.
**If you or a loved one struggle to afford your medications, please discuss the 340B Program with your doctor or nurse. They may be able to assist you with accessing more affordable medications.**
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