DSH Hospitals’ 340B Profit Often Exceeds Charity Care Spending

Under the 340B Drug Pricing Program (“340B Program”), certain types of healthcare facilities
and providers (“covered entities”) can purchase medications at a discounted price.
Covered entities include qualifying hospitals and clinics receiving certain types of Federal
grants. Total purchases at the discounted 340B price were $54 billion in 2022, 87 percent
of which were made by hospitals. Disproportionate Share Hospitals (DSHs) specifically
accounted for $42 billion (78 percent) of program sales.