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Pharmaceutical companies' 340B program restrictions caused $80M in lost revenue for NY hospitals in 2025, threatening care for low-income patients.
Since 2020, pharmaceutical companies have restricted the 340B Drug Pricing Program, limiting contract pharmacies and causing a sharp revenue decline for safety-net hospitals and clinics, including Ellis Hospital in Schenectady, which saw its 340B income drop 56% from $18 million in 2019 to under $8 million in 2024.
These changes have led to an estimated $80 million in lost revenue for New York health centers in 2025 alone, worsening financial strain on hospitals already operating with inadequate margins.
The program, which allows discounted drug purchases and full insurance reimbursement, funds critical services like oncology care for low-income and uninsured patients.
With looming Medicaid cuts and rising healthcare costs, health leaders are urging lawmakers to protect the program to prevent service cuts in underserved communities.
Las restricciones del programa 340B de las compañías farmacéuticas causaron $ 80M en ingresos perdidos para los hospitales de Nueva York en 2025, amenazando la atención a pacientes de bajos ingresos.