Cost Cushion or Cash Cow? A Federal Drugpricing Program Called into Question

With a specific focus on DSH hospitals, this Comment proposes that Congress amend the statutory provisions governing the 340B Program to require covered entities to reinvest 340B funds in improving the quality and accessibility of health care for their low-income and uninsured patient populations. The true potential of the 340B Program to improve the quality of healthcare for low-income and uninsured patients will remain unknown and unharnessed until gaps in the oversight of the 340B Program are closed. Congress must amend the 340B statute to require covered entities to use and account for 340B funds in a way that is consistent with the policy goals of the program. In addition, the program’s current auditing and oversight mechanisms must be adapted to ensure that appropriate recourse may be taken if 340B funds are not properly used.

Caleb C. Briggs *

* J.D., 2024, University of Richmond School of Law; B.A., 2020, University of Virginia.