Provider organizations that participate in the 340B drug discount program, or covered entities (CEs), depend on the savings to fund services that would otherwise operate at a loss, including patient navigators, mental health services, and air ambulances.¹ In Advisory Board’s 2024 survey of strategic planners for health systems, 79% of respondents ranked 340B as somewhat or very important to their overall margin.

The program faces headwinds, including pushback from pharmaceutical manufacturers, state-based reporting requirements, and proposed regulatory changes from the federal government.

Three points of criticism contribute to stakeholders’ interest in 340B reform.