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After mounting evidence from government watchdogs, academics, patient advocates, lawmakers, and concerned citizens that the safety-net 340B drug discount program was enriching hospitals at the expense of the low-income patients it was intended to serve, the American Hospital Association (AHA) finally announced new principles that they claim will ensure “good stewardship” of the program.

Enacted more than 25 years ago with bipartisan support, the 340B program was designed to help healthcare safety net providers deliver more affordable outpatient prescription drugs to vulnerable or uninsured patients.

The 340B drug discount program — a vital safety-net program created to help millions of vulnerable or uninsured patients receive care — is no longer benefiting many of the patients it was meant to serve. That’s according to mounting findings from congressional investigations, independent economists, and government watchdogs. Two new studies released by the Government Accountability Office (GAO) add to these growing concerns, looking specifically at contract pharmacies and hospitals in the 340B program. GAO’s latest conclusions provide further evidence more must be done to fix the 340B program and bring it back to the original intent of helping patients.