340B keeps rural hospitals alive. Big Pharma wants it gone

TL;DR

Hospitals earned an average of $311.9 million from patient care in 2024, requiring an additional $34.6 million from non-patient sources to break even.
Nonprofit hospitals have a smaller share of revenue from patient care compared to for-profit hospitals.
In 2023, 39% of U.S. hospitals lost money, with less than half having a profit margin over 5%.
Non-patient revenue streams are essential for the survival of many hospitals, with 507 out of 1,779 evaluated hospitals having a negative operating margin but positive net income due to these sources.
The 340B drug discount program allows safety net hospitals to acquire drugs at a discount, which they can use to provide care or generate revenue for operations.
Drugmakers oppose the 340B program due to its impact on profits, while proponents argue it's vital for keeping hospitals serving less affluent populations open.
The Drug Pricing Program provided nearly $100 billion in benefits to rural hospitals in 2022.
Projected negative Medicare margins at hospitals are expected to increase significantly by 2027.
Reforming the 340B program could cost taxpayers up to $500 billion for a bailout if hospitals are not adequately supported.
Alternative solutions like increasing Medicare and Medicaid reimbursements could increase the deficit and national debt.

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