Healthcare distributors deliver roughly 15 million medicines and healthcare products every day to hospitals, physicians’ offices, pharmacies, and other providers across the country. While they play a critical role in keeping the healthcare supply chain moving, they are largely removed from the design and operation of the 340B Drug Pricing Program. As lawmakers debate changes to 340B, it is essential to recognize the distinct role distributors serve — and avoid policies that assign them responsibility for decisions they do not control.
Congress created the 340B Drug Pricing Program to help safety-net providers stretch limited resources and deliver care to patients who need it most. More than 30 years later, the program has expanded significantly into what many argue is a program that helps richer providers more than poorer patients. That growth has reshaped incentives across the healthcare system, influencing how hospitals operate, how manufacturers price and promote medicines, and how care is delivered.
