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ADAP Advocacy Targets 340B Program Excess in New Commercial

ADAP Advocacy launches commercial targeting 340B Drug Pricing Program reforms, exposing excessive hospital CEO compensation funded by program meant for low-income patients.

This news matters because it exposes how a government program designed to help low-income patients access affordable medications is potentially being exploited to enrich hospital executives rather than serve patients. The 340B Drug Pricing Program, created in 1992, requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations at significantly reduced prices, with the savings intended to stretch scarce federal resources and provide more comprehensive care to vulnerable populations. When these savings are diverted to excessive executive compensation instead of patient care, it undermines the program's fundamental purpose and contributes to rising healthcare costs for everyone. Patients facing medical debt while learning about multi-million dollar CEO salaries creates both financial and emotional harm, potentially eroding trust in the healthcare system. This situation affects not only low-income patients but all healthcare consumers, as misused program funds can lead to higher insurance premiums and reduced access to care across the system.