OHIO’S 340B HOSPITALS AND CLINIC SYSTEMS ARE FAILING COMMUNITIES
Ohio’s 340B hospitals and clinics 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 have no idea how much they are making off each visit.
Big Hospitals and Clinics Put Profits First.
Ohio’s tax-exempt hospitals and publicly-funded clinics are cashing in on the 340B program with no guarantee those dollars actually helped the people they were meant to serve. And that is not all – Ohio clinics collected nearly $1 billion in taxpayer funds in 2023.
Ohio health systems provide far less charity care than the rest of the nation. Their average charity care rate was just 1.52% of their operating budget.
76% of Ohio’s non-profit health systems receive more in tax benefits than they spend on community investments.
One Ohio hospital ranked #5 nationally on the Lown Institute’s list of the worst U.S. hospitals for community spending.
Where Is The Money Going?
A tax-exempt Ohio hospital paid 20 of its executives over $1 million, and another 30 over $500,000.
One giant clinic system funded a carefully curated collection of more than 125 art pieces, with more acquisitions planned in Dayton and Xenia.
A Cincinnati hospital’s CEO makes more than $9 million a year, among the highest in the nation for a nonprofit.
Another 340B clinic system turned debt collection into a profit center, creating a side business that raked in $2.5 million in 2023 by consulting on collections services for other clinics.
Transparency Fails While 340B Profits Soar.
Nearly 8 out of 10 Ohio hospitals failed to comply with federal price transparency rules.
A U.S. Senate investigation found one Ohio facility pulled in nearly $1 billion in 340B subsidies in just 38 months.
Another system pocketed $276 million in 340B benefits over five years.
An Akron clinic failed a federal audit, admitting they “dispensed 340B drugs to ineligible individuals.”
In Hillsboro, auditors found one clinic marking up drugs by 300 to 400%, nearly tripling its revenue in a single year.
One of Ohio’s largest clinic systems was found marking up drugs by 150%, generating $23 million in pharmacy revenue from only $9 million in supply costs.
Ohio’s 340B program was meant to serve patients, not pad hospital and clinic profits. Instead, charity care lags, CEO pay soars, and transparency is ignored.
HOLD 340B HOSPITALS AND CLINICS ACCOUNTABLE - VOTE NO ON HB 276/SB 198!