ADAP Advocacy has published an infographic examining the relationship between hospital participation in the 340B Drug Pricing Program and declining levels of charity care provided to low-income patients. The release is part of the organization's broader 340B Project and national advocacy campaign questioning whether the program has become "too big to fail."
The "340B Too Big to Fail – Charity Care" infographic specifically analyzes requirements for hospitals to offer free care and financial assistance to poor patients, commonly referred to as charity care. According to the data presented, charity care has been decreasing consistently year after year despite the program's intended benefits. This trend raises significant concerns about whether hospitals are fulfilling their obligations under the 340B program, which provides discounted drugs to qualifying healthcare organizations with the expectation that savings will be used to support vulnerable patient populations.
Medical debt has reached staggering levels, with patients owing at least $220 billion nationwide. Nearly 75% of this debt is owed directly to hospitals, creating substantial financial burdens for individuals and families. The infographic highlights that Black and Hispanic communities are disproportionately impacted by both declining charity care and accumulating medical debt, pointing to systemic inequities in healthcare access and affordability.
The infographic is available for download at https://www.adapadvocacy.org/publications.html#i and complements a recently released commercial as part of ADAP Advocacy's ongoing campaign. The organization's mission focuses on promoting and enhancing AIDS Drug Assistance Programs while improving access to care for people living with HIV/AIDS through collaboration with various stakeholders including advocates, healthcare providers, government agencies, patients, and pharmaceutical companies.
For the healthcare industry, these findings suggest potential misalignment between the 340B program's objectives and actual hospital practices. As charity care declines despite program participation, regulators and policymakers may face increased pressure to strengthen oversight and enforcement mechanisms. The disproportionate impact on minority communities further underscores the need for targeted interventions to address healthcare disparities.
For patients, particularly those from vulnerable populations, the declining charity care translates to reduced access to essential medical services and increased financial strain. The $220 billion in medical debt represents not just individual hardship but broader economic consequences, as medical debt remains a leading cause of bankruptcy in the United States. The infographic serves as an important resource for advocates and policymakers seeking to understand how 340B program implementation affects real-world patient outcomes and healthcare equity.
