Extraction Dressed Up as Care: Why the 340B Program Needs to Answer to Patients

By: Ryan Alvey, Executive Director & Founder, Positive Change Movement, and member of the ADAP Advocacy 340B Patient Advisory Committee

The 340B Drug Pricing Program was created with a simple moral promise: to help safety-net providers stretch limited resources so vulnerable patients could get care, medication, and support. What happened to that promise?

Photo Source: ADAP Advocacy

As a person living with HIV in rural Kentucky, I know exactly what that promise is supposed to mean. It is supposed to mean that someone like me does not have to beg for care. It is supposed to mean that HIV service organizations exist for people living with HIV, not merely because of us. It is meant to mean that the money generated by our diagnoses, our prescriptions, our labs, and our lives comes back to the communities it was intended to serve. 

But too often, that is not what patients experience. 

I am not writing this as an outsider looking at a policy chart. I am writing this as a gay man living with HIV and numerous comorbidities who became an advocate because I had no choice. I have sat in rooms where people talk about ending the HIV epidemic while people living with HIV are missing from leadership. I have watched organizations build budgets, salaries, reputations, and public-relations campaigns around our suffering, while those most affected are treated as inconvenient whenever we ask questions.

And I have lived the consequences of a system where the provider holds all the power.

In rural communities, there may be only one HIV provider within reach. If that provider refuses  care, delays care, restricts access, or retaliates against a patient who speaks up, the patient does  not simply "go somewhere else." Somewhere else may require half a day of travel. Somewhere else may require transportation that the patient does not have or fuel that the patient cannot afford. Somewhere else may mean months without consistent care. Somewhere else may mean choosing between dignity and survival.

That is why 340B transparency is not an abstract policy issue. It is a patient safety issue.

The 340B Program is now enormous. IQVIA reported that in 2025, drug sales under the program topped $179.2 billion, which represented a year-over-year increase of 20% (IQVIA, 2026). The federal agency charged with policing the program describes it as a way for healthcare providers to “stretch scarce federal resources,” reach more eligible patients, and provide more comprehensive services.

That purpose matters. But purpose without accountability is just branding. 

An ADAP Advocacy report, "Is the 340B Drug Pricing Program the Next 'Too Big to Fail'?", asks the question many patients have been asking quietly for years: where are the savings going?  The report argues that 340B has grown without sufficient transparency and highlights an analysis of 102 providers in which annual revenues increased dramatically after joining 340B, CEO compensation rose, and hospital charity care declined.

Photo Source: ADAP Advocacy

This issue should concern everyone who cares about the future of HIV care. Charity care isn't just limited to hospitals; it's really about supporting people. The truth is, individuals with untreated, symptomatic HIV or advanced AIDS tend to use hospitals more often, facing higher admission rates and longer stays (NIH, 2018).

To be clear, 340B should not be destroyed or weakened. For HIV care, it can be essential. State AIDS Drug Assistance Programs (ADAPs) and Ryan White grantees depend heavily on drug rebates and savings to keep people insured, medicated, and...alive. The National Alliance of State and Territorial AIDS Directors (NASTAD) reported that in calendar year 2024, ADAPs achieved an 87% viral suppression rate among clients served, compared with an estimated 67% among all people living with diagnosed HIV in the United States.

That is exactly why reform matters.

When a program is this important, patients cannot afford blind trust. We cannot afford vague assurances that “the money helps the mission.” We need to know how. We need to know whether 340B revenue is paying for direct patient assistance, transportation, housing stabilization, peer navigation, rural access, mental health support, and culturally competent care — or whether it is being absorbed into executive salaries, expansion strategies, branding, buildings, and bureaucracy. 

People living with HIV should not have to file records requests, complaints, lawsuits, or whistleblower reports just to understand whether money intended to help us is actually reaching us.

Despite the Denver Principles, our community has been told for decades to trust institutions. Trust the nonprofit service provider. Trust the grant recipient. Trust the volunteer board. Trust the same systems that too often exclude the very people whose lives justify their funding.

I do not trust systems that refuse to be transparent.

Photo Source: ADAP Advocacy | iStock

If an HIV service organization receives funding from the Ryan White HIV/AIDS Program and benefits from 340B Program-related revenue, and claims to exist for people living with HIV, then it should be able to answer basic questions.

How much 340B revenue did it generate? How much was spent on direct patient assistance? How many patients received help with rent, utilities, transportation, food, insurance premiums, or emergency needs? How many people living with HIV serve on its board? How many people living with HIV hold paid leadership positions? How many complaints were filed by patients, applicants, employees, or community members? And how many of those complaints were independently investigated?

These questions are not attacks. They are the bare minimum.

The 340B Program's future cannot be decided only by hospitals, pharmaceutical companies, lobbyists,  providers, and trade associations. People living with HIV must be at the center of the conversation. Not as testimonials. Not as photos in annual reports. Not as an advisory board decoration. As decision-makers.  

Because we know what happens when accountability is optional.

We know what it feels like to be reduced to a funding category. We know what it feels like to see organizations praised publicly while patients go without help privately. We know what it feels like to be told that a program exists for us, only to be treated as a problem when we demand access, equity, and dignity.

The phrase “too big to fail” entered the public consciousness after the 2008 financial crisis, describing institutions so deeply embedded in the economy that their collapse could threaten the entire system. Julie Young’s definition of "too big to fail” is useful here because the 340B Program has become embedded in the healthcare financing system in much the same way: too large to ignore, too important to casually dismantle, and too dangerous to leave without accountability.

But Duncan Watts pushed the idea even further in the Harvard Business Review, asking whether some systems are not just “too big to fail” but “too big to exist” in their current form.  That is the question 340B now forces us to ask. Not whether the program should disappear, but whether a program this large should continue operating with so little transparency about where the savings actually go.

Photo Source: Third Way

Recent policy analysis from Third Way has also warned that hospitals can use 340B pricing advantages to increase revenue without ensuring patients receive the benefit.  That is exactly why patients should not be asked to accept vague promises. If providers are generating savings in the name of low-income, uninsured, underinsured, and chronically ill patients, then those patients deserve proof that the money is reaching them.

If the 340B Program is truly a safety-net program, then patients should be able to see the net. We should be able to touch it. We should know it will hold us when we fall.

Anything less is not safe. 

It is extraction dressed up as care.

Disclaimer: All funders of the ADAP Advocacy Association are publicly listed on our website. 

Disclaimer: Guest blogs do not necessarily reflect the views of the ADAP Advocacy Association; rather, they provide a neutral platform for the author to promote open, honest discussion of public health-related issues and updates.

References:

[1] Health Resources and Services Administration. (n.d.). 340B Drug Pricing Program. U.S. Department of Health & Human Services. Retrieved online at https://www.hrsa.gov/opa

[2] Health Resources and Services Administration. (2025, December 10). 2024 340B Covered Entity  Purchases. U.S. Department of Health & Human Services. Retrieved online at https://www.hrsa.gov/opa/updates/2024-340b coveredentity-purchases 

[3] Macsata, B.M., Anthony, G., & Hopkins, M.J. (2025, February). Is the 340B Drug  Pricing Program the Next “Too Big to Fail”? Washington, DC: ADAP Advocacy.  https://www.adapadvocacy.org/s/2025_ADAP_Project_RW_340B_Asset_16_Too_Big_To_Fail  _03-07-25.pdf 

[4] Martin, R., Karne, H., and Zeng, S. (2026, June 4). The Size and Growth of the 340B Program in 2025. IQVIA. Retrieved online at https://www.iqvia.com/-/media/iqvia/pdfs/us/white-paper/2026/iqvia-size--growth-of-340b-in-2025-white-paper-2026.pdf

[5] NASTAD. (2026). 2026 National Ryan White HIV/AIDS Program Part B ADAP Monitoring  Project Annual Report. Retrieved online at https://nastad.org/2026-rwhap-part-b adapmonitoring-report 

[6] Thune, J. (2024). SUSTAIN 340B Act Discussion Draft Explanatory Statement and Supplemental Request for Information. Bipartisan 340B Senate Working Group. Retrieved online at  https://www.thune.senate.gov/wp-content/uploads/media/doc/340B%20Discussion%20Draft%20Explanatory%20Document%20and%20Subsequent%20RFI.pdf 

[7] Rowell-Cunsolo TL, Liu J, Shen Y, Britton A, Larson E. The impact of HIV diagnosis on length of hospital stay in New York City, NY, USA. AIDS Care. 2018 May;30(5):591-595. doi: 10.1080/09540121.2018.1425362. Epub 2018 Jan 17. PMID: 29338331; PMCID: PMC5860957.

[8] Watts, D. (2009, June). Crisis Management – Too Big to Fail? How About Too Big to  Exist? Harvard Business Review. Retrieved online at https://hbr.org/2009/06/too-big-to-failhow about-too-big-to-exist 

[9] Wofford, David. (2025, February 12). How Hospitals are Raising Drug Prices. Third Way: Report. Retrieved online at https://www.thirdway.org/report/how-hospitals-are-raising-drug-prices 

[10] Young, Julie. (2023, November 13). Too Big to Fail: Definition, History, and Reforms. Investopedia: Terms. Retrieved online at https://www.investopedia.com/terms/t/too-big-tofail.asp

Lies, Damned Lies, and 340B Matters Lies

By: Marcus J. Hopkins, Health Policy Lead Consultant, ADAP Advocacy

The 340B reform denialists, in chorus, obfuscate the truth: namely, that the 340B Drug Pricing Program is doing "just fine" and needs no changes, no matter how big or small. In a recent social media post, an organization that professes to care about patients, “340B Matters”, posted the following on X:

Welcome to Friday Pharma Lies, a series debunking the drug industry’s falsehoods about the 340B Program.

Lie: 340B discounts are supposed to be passed along to patients.

Truth: Congress created 340B “to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” Accordingly, covered entities use 340B to fund safety net healthcare services they otherwise could not afford to offer. Many covered entities use 340B discounts to connect patients with discounted drugs, but there is no requirement for them to do so (Figure 1; 340B Matters, 2026).

Figure 1 – 340B Matters Social Media Post

Photo Source: 340B Matters

This post, while technically accurate, is arguably one of the most craven positions one can take on the sprawling, virtually unregulated funding mechanism we call the 340B Program.

Moreover, it is a position being taken by an “org” that is almost entirely devoid of information about who they are.

When looking into the history of 340B Matters, what ADAP Advocacy was able to find was the following:

1. 340B Matters is not, according to the federal government, a 501(c) non-profit organization. While this is not, in and of itself, illegal, the “.org” URL domain was originally intended for non-commercial ventures and organizations. As such, when a website is created using the “.org” extension, the safe assumption is that the website one is visiting is that of a non-profit or charitable organization. Instead, the website is owned by Han Kingler, a partner at the lobbying firm Black Diamond Strategies, who, according to the 340B Matters website’s privacy policy, serves as the Executive Director of the organization (340B Matters, 2016).
2. In addition to not being a registered non-profit, 340B Matters is “proudly sponsored” by The Craneware Group, a for-profit organization that specializes in “340B solutions”—a fanciful way of saying, “Maximizing 340B revenues for providers and increasing profits” (The Craneware Group, 2026). This, of course, runs counter to the 340B Matters tagline, “Patients Over Profits. The Craneware Group, while legally domiciled in Scotland, has a U.S. headquarters in Deerfield Beach, FL, part of the greater Boca Raton/Ft. Lauderdale area. The “solutions” they offer are software-based applications that focus on maximizing profits and decreasing overhead costs, including margins, revenues, and workforce.
3. 340B Matters obfuscates its ownership and operational team by creating a “Who We Are” page that provides the following explanation of the organization: “340B Matters seeks to protect this vital program for nonprofit healthcare facilities from those that would severely restrict access to the 340B program. We support patients over profits” (340B Matters, 2025). This page includes no information about who founded the organization, whether the organization has a Board of Directors, nor mentions any employees, contractors, or executive leadership. Nor does their website indicate that any healthcare providers or patient advocacy groups are affiliated with 340B Matters.

Essentially, what ADAP Advocacy found is that every aspect of the 340B Matters “organization” operates for one purpose:

To continue the unchecked growth of the 340B program. That explosive growth is concerning because it hasn't alleviated the medical debt crisis in this country, but also because it sets the stage for a program that is too big to fail.

Photo Source: ADAP Advocacy

Again, the aforementioned social media post is technically correct: there is no statutory obligation for 340B covered entities to provide discounted medications to the patients they purport to serve.

And this is just one of myriad problems with the 340B Program.

The program was designed to ensure that patients who could otherwise neither access nor afford healthcare services, particularly those living with HIV/AIDS, hemophilia, and Black Lung disease.

What it has become, however, is a revenue cash cow for unscrupulous hospitals, Federally-Qualified Health Centers, and other covered entities that, because of the fact that there are virtually no rules or enforcement mechanisms for the 340B Program itself, are able to get away with misappropriating 340B funds to support various endeavors that run counter to the statute’s intended purposes, including (but not limited to):

1. The inflation of executive compensation packages, as documented on 340bmap.org
2. The building, renovation, or upgrading of facilities in ways that do not improve access to healthcare services (e.g., adding water and other decorative features to existing hospitals)
3. The opening of new facilities or purchase of practices in higher-income areas that will generate greater revenue while simultaneously shuttering existing facilities and practices in lower-income areas
4. And not to mention, subsidizing a college football coach's salary, or funding electoral ballot initiatives, or purchasing private learjets

Photo Source: ADAP Advocacy

“Organizations” such as 340B Matters create content that is designed to make it seem that pharmaceutical companies and proponents of 340B reform are attempting to shut down healthcare facilities by taking away 340B revenues. They develop content like this to make it seem that only one side of the equation—the side of those who actually provide the 340B revenues to them in order to continue offering the medications through Medicare markets—are attempting to cut off your healthcare services just to make a profit.

What they consistently fail to mention is that, aside from AIDS Drug Assistance Programs and hemophilia clinics, 340B covered entities are not required to provide any transparency about the amount of their annual revenues the 340B Program accounts for, how those revenues are spent, or whether or not lower-income patients actually benefit from those revenues in any appreciable manner.

Disclaimer: All of the funders of the ADAP Advocacy Association are publicly available online at https://www.adapadvocacy.org/support.html. 

Disclaimer: Guest blogs do not necessarily reflect the views of the ADAP Advocacy Association; rather, they provide a neutral platform for the author to promote open, honest discussion of public health-related issues and updates.

References:

[1] 340B Matters. (2016, June 01). Privacy policy. 340B Matters. https://340bmatters.org/Privacy-Policy/

[2] 340B Matters. (2025). Who we are. 340B Matters. https://340bmatters.org/who-are-we/

[3] 340B Matters. (2026, March 20). Welcome to Friday Pharma Lies, a series debunking the drug industry’s falsehoods about the 340B Program. Lie: 340B discounts are [Image attached] [Status update]. Facebook. https://www.facebook.com/share/v/1AwvuRMx8R/

[4] The Craneware Group. (2026). Our Story. Deerfield Beach, FL: The Craneware Group: