PUBLIC FUNDS. PRIVATE GREED.
CALIFORNIA’S 340B HOSPITALS AND CLINIC SYSTEMS ARE FAILING COMMUNITIES
California’s 340B hospitals and clinics are supposed to help people. Instead, too many are acting like for-profit corporations – defrauding Medi-Cal, exploiting the federal 340B program, failing audits, and enriching executives – while underserved patients have no idea how much 340B facilities are making off each visit.
PUBLICLY-FUNDED CLINICS. WALL STREET BEHAVIOR.
One 340B clinic system in California was caught defrauding Medi-Cal so blatantly, it had to cough up $3.5 million for lying to Medi-Cal and pocketing funds meant for vulnerable patients.
Another publicly funded health system meant to serve low-income families was caught inflating bills, falsifying records, and draining Medicaid – ultimately forced to pay back over $30 million meant for patient care.
These problems are so widespread that clinic executives have even received bonuses for lowering the number of Medi-Cal violations – something they should have been doing all along.
Meanwhile, while their patients and workers struggle with the high cost of living, several tax-exempt clinic CEOs earn over $2 million per year.
Despite receiving $289 million in federal grants – one 340B clinic system stood by while local pastors had to pool money to erase $1.8 million in medical debt for struggling families in their community.
One clinic spent over $1 million on international art over the last five years. In 2023 alone, they wasted $500,000 on an art consultant and shipping art from Europe — all while claiming to “reduce health disparities.”
CLEAR VIOLATIONS. NO ACCOUNTABILITY.
In 2024, 11 out of 12 audited 340B clinics in California failed – caught mismanaging drug discounts intended for patient care, billing
Medi-Cal twice, or dispensing discounted drugs improperly – yet most still profit from the program.
At one taxpayer-funded clinic system, executives steered patients for profit and took kickbacks – violating basic medical ethics and federal law. They were forced to pay $15 million, but they’re still in the 340B program.
One major health center took federal grant money meant to expand access to care – then failed to properly document how it was spent. Millions intended to support underserved patients were mishandled under the guise of community health.
HOLD 340B HOSPITALS AND CLINICS ACCOUNTABLE -
VOTE NO ON AB 1460!