EXPOSING 340B ABUSE: HOW MINNESOTA HOSPITALS & CLINICS ARE FAILING FAMILIES
Minnesota’s 340B hospitals are supposed to help people. Instead, too many are acting like for-profit corporations – exploiting the program, failing audits, and enriching executives – while underserved patients are left in the dark.
​​​
​Billions of Dollars. Zero Accountability.​
A new Minnesota Department of Health report shows hospitals and clinics took in at least $1.34 billion in profits from the program in 2024.
72.4% of 340B profits were concentrated in urban areas, including Minneapolis, St. Paul, Duluth, and nearby suburbs, rather than rural Minnesota as often claimed.
Taxpayers funded 54.9% of 340B profits through programs such as MinnesotaCare, Medicaid, Medicare, and other public coverage.
The remaining profits came from higher drug prices paid by commercial insurers, increasing costs for employers and privately insured patients.
Big Hospitals Put Profits First.
The Minnesota hospital that took the largest share of 340B profits in 2024 operates its own in-house PBM, which now control over 90% of the health systems’ 340B pharmacies. This drives concerns that drug choices may be driven by profit instead of patient needs.
An investigation found that a major Minnesota 340B hospital was suing patients who actually qualified for free care.
At the same time, another large, tax‑exempt hospital system was denying or delaying medical treatment for patients with unpaid bills – even when those patients qualified for financial assistance.
One Minnesota 340B hospital brought in over half a billion dollars in revenue yet spent less than one‑third of one percent of its total expenses on charity care.
And while patients struggled to afford care, a major Minnesota 340B hospital spent money to build its own private airport lounge.
Minnesota’s 340B program was meant to serve patients, not pad hospital profits. Instead, charity care lags, CEO pay soars, and transparency is ignored.
HOLD 340B HOSPITALS AND CLINICS ACCOUNTABLE AND STOP 340B ABUSE