EXPOSING 340B ABUSE: HOW VIRGINIA HOSPITALS & CLINICS ARE FAILING FAMILIES
Virginia’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 are left in the dark.
When compared to non-340B hospitals, Virginia’s 340B disproportionate share hospitals:
Reported
nearly triple
the revenue
119%
Invested
more on Wall Street
Leaned heavily on temporary labor – using
145%
more contract staff
Big Hospitals & Clinics Put Profits First.
Virginia’s tax-exempt hospitals and publicly-funded clinics are gaming the system – cashing in on 340B dollars with no guarantee that patients benefit.
Despite their safety-net status, Virginia health systems provide far less charity care than the rest of the nation. Their average charity care rate was just 1.90% of their operating budget.
One non-profit 340B hospital’s profit margins reach as much as $100 million a year, the highest of any hospital in the state. This same health system was featured in a New York Times expose for taking 340B resources from poor neighborhoods and investing them in wealthy neighborhoods.
Another 340B hospital in Virginia reported $1.9 billion in revenue in 2024 but spent only 0.68% on charity care.
Meanwhile, Virginia clinics collected over $412 million in taxpayer funds in 2024.
A Virginia community health center sued a couple over a $59 bill that grew by 600% in a matter of months because of court costs, interest, and legal fees.
Huge Markups. Zero Accountability.
A review of all 49 Virginia hospitals found that 38 (78%) were non-compliant with federal price transparency regulations.
One Virginia hospital generated $276 million in savings and revenue through the 340B program yet stated that it does not track the use of those savings.
Virginia’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 AND STOP 340B ABUSE