Anish Koka, MD, a Philadelphia-based cardiologist and health policy commentator, has criticized the federal 340B drug pricing program, describing it as a “disaster” that fails to assist poor patients. Instead, he claims it funds lavish hospitals and increases healthcare costs nationwide. Koka made these remarks on X.
“The 340b is an absolute disaster that does next to nothing to help poor patients,” said Koka. “It is, on the other hand, a major driver of marble in hospital lobbies. It needs serious reform if we are to seriously think about tackling US health care costs.”
The 340B Drug Pricing Program was established by Congress in 1992 with the intention of aiding hospitals and clinics serving low-income patients by allowing them to purchase outpatient drugs at discounted prices. The savings were meant to improve access to care for underserved populations. However, some critics argue that certain hospitals profit from the program without directly benefiting patients.
According to recent data from Pennsylvania, 340B hospitals experienced a 20% increase in total assets from 2014 to 2022, while their charity-care spending decreased by approximately 36%. This discrepancy suggests that the financial gains from the program are not being translated into increased support for low-income patients. Concerns have been raised that the incentives provided by the 340B program may be enriching institutions rather than improving patient access.
Further research into Pennsylvania’s 340B contract-pharmacy footprint reveals that about 60% of pharmacy locations linked to 340B hospitals are situated in higher-income neighborhoods. This is contrary to the program’s original intent of directing discounted-drug benefits towards underserved communities, indicating that patients in need often see little direct benefit from profits generated through the program.
Dr. Anish Koka is a board-certified cardiologist and founder of Koka Cardiology PC, a private practice based in Philadelphia, Pennsylvania. He completed his Cardiology Fellowship at Jefferson Health after earning his Doctor of Medicine from Temple University’s Lewis Katz School of Medicine. With over 12 years in private practice, Koka is recognized for his clinical expertise and commentary on U.S. health policy and healthcare reform.
