Curated News
By: NewsRamp Editorial Staff
November 25, 2025
Hospital CEOs Pocket 340B Funds Meant for Poor Patients
TLDR
- ADAP Advocacy's report reveals how hospital CEOs gain unfair financial advantages by diverting 340B program funds meant for patient care into excessive executive compensation packages.
- ADAP Advocacy published infographics showing how the 340B Drug Pricing Program's $66 billion in manufacturer rebates are systematically redirected from patient services to fund hospital CEO compensation packages.
- ADAP Advocacy's findings expose how excessive hospital CEO pay compromises the 340B program's mission to provide healthcare access for poor patients and vulnerable communities.
- ADAP Advocacy's infographics reveal that hospital CEO compensation grew exponentially after hospitals became eligible for the 340B program originally designed to help poor patients.
Impact - Why it Matters
This investigation matters because it exposes how a critical healthcare safety net program designed to help low-income patients access medications is being exploited to enrich hospital executives instead. The 340B Drug Pricing Program was created to stretch scarce federal resources further, allowing safety-net hospitals and clinics to provide more comprehensive care to vulnerable populations. When these funds are diverted to executive compensation rather than patient services, it undermines the entire purpose of the program and potentially limits healthcare access for those who need it most. This affects every taxpayer and healthcare consumer, as it represents a misuse of public health resources that could drive up overall healthcare costs while reducing care quality for society's most vulnerable members.
Summary
ADAP Advocacy has launched a powerful two-part infographic series as part of its 340B Project, exposing how excessive executive compensation packages for hospital CEOs are diverting funds intended to help low-income patients access healthcare. The organization's investigation reveals that while the 340B Drug Pricing Program has grown to a massive $66 billion enterprise designed to assist poor patients, manufacturer rebates are increasingly being used to fund skyrocketing CEO salaries rather than patient care services. This troubling trend is highlighted in the "340B Too Big to Fail – Executive Compensation" series, which shows how CEO pay has grown exponentially since hospitals became eligible for the program.
The first infographic, "340B Too Big to Fail – Executive Compensation – Part 1," focuses on the dramatic pay gap between hospital CEOs and frontline nurses, illustrating how the program's original mission of helping vulnerable patients has been compromised. The second infographic, "340B Too Big to Fail – Executive Compensation – Part 2," demonstrates the direct correlation between hospital participation in the 340B program and explosive growth in executive compensation. These findings are part of ADAP Advocacy's broader national advocacy campaign questioning whether the 340B Drug Pricing Program has become "the next 'Too Big to Fail'" entity, echoing concerns about systemic financial institutions. The infographics complement a recently released commercial and are available for download through the organization's publications page, providing crucial transparency about how healthcare dollars are being allocated.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, Hospital CEOs Pocket 340B Funds Meant for Poor Patients
