New Analysis Shows 340B Tax-Exempt Hospitals Provided More Than $50 Billion in Total Benefits to Their Communities


By The American Hospital Association

WASHINGTON, DC (March 1, 2018) – Hospitals of all kinds provide a full range of benefits to their communities.  In a new analysis released today, the American Hospital Association (AHA) spotlights how 340B tax-exempt hospitals provided more than $50 billion in total benefits to their communities in 2015 alone, the most recent year for which data is available.

“Savings from the 340B drug savings program allow eligible hospitals to provide a multitude of benefits to communities with a significant number of vulnerable patients,” said Rick Pollack, president and CEO of the American Hospital Association. “These benefits go well beyond financial assistance for needy patients and include care and services such as wellness clinics, nutritional services and mental health clinics, the addition of nurses, social workers and transportation services to serve vulnerable patients and many other vital services that would otherwise be unavailable.”

The savings from 340B discounts, which amount to less than 3% of annual drug purchases, are an important source of support for a wide range of community benefits and services and accrue directly from discounts on expensive prescription drugs and not from government funds. That is why Congress created the 340B program over 25 years ago, relying on savings from drug discounts “to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” This analysis confirms that 340B hospitals are meeting and exceeding that goal.

The full analysis can be found at It was derived using information from IRS Form 990 Schedule Hdata and from AHA Annual Survey data. In addition, Ernst & Young (EY) confirmed that the methodology used is consistent with the approach used by EY in their prior analyses of the Form 990 Schedule H.

Contact:         Arika Trim, 202-626-2319 [email protected]

                       Gabriella Valentine, 202-626-2264 [email protected]