340B Abuse: The Evidence Is in the Data and in Hospital Patient Bills
- May 14
- 2 min read
Minnesota hospitals participating in the federal 340B drug discount program are supposed to turn deep drug discounts into tangible relief for patients. But the state’s own data shows a widening gap between what hospitals gain and what patients experience.
According to Minnesota’s most recent 340B report, participating hospitals collected $1.34 billion in net 340B revenue in 2024 – receiving $3.04 billion in discounts for medications they purchased for just $1.53 billion. Yet those savings did not translate into greater charity care, lower prices, or improved access. Our analysis, the Hospital Spending Watch: Minnesota, exposed that Minnesota’s 340B DSH hospitals generated more patient revenue, invested more in financial markets, and spent no higher share on charity care. The numbers tell a clear story: hospitals kept the benefit, while patients saw little change.
Patients feel that disconnect directly. For them, 340B doesn’t look like discounted care, it looks like inflated hospital bills. One Southwest Minnesota patient receives infusion treatments for migraines every 12 weeks, each costing nearly $9,000. Her hospital charges $8,200 for a medication with a manufacturer list price of about $2,000 – a 310% markup. Because the hospital participates in 340B, it likely paid only a few hundred dollars for that drug so the hospital’s profits were even greater.
The 340B program was designed to help Minnesota patients. Instead, weak oversight has allowed too many tax-exempt hospitals to function like for-profit corporations – enriching executives and passing costs to patients.
Despite this, Minnesota lawmakers are rushing to pass a bill that would make 340B abuse, and unchecked hospital markups permanent. This would take the federal program in the wrong direction. If lawmakers truly want 340B to serve patients, they must slow down, demand accountability from hospitals, and protect Minnesotans from a system that rewards financial gain over patient care.