Tax-exempt hospitals participating in the 340B Drug Pricing Program provided nearly $100 billion in total community benefits in 2022.
According to a September 2025 report from the American Hospital Association, 1,166 340B hospitals accounted for nearly $99.5 billion in total benefits — a $32 billion, or 47%, increase from 2019. Of that amount, about $46.4 billion went toward financial assistance, unreimbursed Medicaid costs and other means-tested government programs. Hospitals also reported more than $33.7 billion in other benefits such as health professions education, research and community group contributions.
Combined, financial assistance and other community benefits totaled $80.1 billion. Additional expenses included $370 million for community-building activities, a $17.5 billion Medicare shortfall and nearly $1.5 billion in bad debt.
The 340B program was created in 1992 to help safety-net hospitals expand access to care through discounted outpatient drug pricing. Participation has tripled since its inception, now covering more than 53,000 sites. In 2023, 340B drug purchases reached a record $66.3 billion, with disproportionate share hospitals accounting for $51.9 billion.
The AHA’s report comes amid growing concern among hospitals about proposed program changes. In August, the Health Resources and Services Administration announced plans for a pilot program allowing drug manufacturers to test rebate-based alternatives to traditional upfront discounts. The initiative has drawn sharp opposition from provider groups, who warn that shifting to a post-sale rebate model could erode 340B’s value and destabilize safety-net providers.
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