Show-Me State Times

Dutch Rojas, the founder of ReKlaim Health, has raised concerns about nonprofit health systems' use of the 340B Drug Pricing Program. He claims these systems exploit the program by billing patients at full price while retaining government drug discounts. This statement was made on X.

"It's called 340B," said Rojas. "The US government helps nonprofit health systems buy drugs at steep discounts. Do they pass those savings on to patients? NO! They pocket the difference, bill insurers and patients full price and call it charity care."

The 340B Drug Pricing Program, established in 1992 and administered by the Health Resources and Services Administration (HRSA), was designed to help healthcare providers extend limited resources to serve vulnerable populations. It allows eligible entities to purchase outpatient drugs at reduced prices, with savings intended to support access to care for low-income and uninsured patients.

According to a 2022 report by the Community Oncology Alliance, health systems participating in 340B often generate significant profits by marking up discounted drugs. The report indicates that hospitals marked up oncology drug prices by up to 11 times their discounted acquisition cost. Additionally, a study by Milliman found that 340B hospitals charge nearly 200% more for outpatient drugs to commercial insurers than non-340B hospitals, raising questions about patient benefit.

PhRMA reported that in Missouri, 42 hospitals participate in the 340B program, holding over 1,400 contracts with pharmacies nationwide. Only 22% of these contract pharmacies are located in medically underserved areas. Furthermore, it was noted that 79% of participating hospitals in Missouri provide charity care below the national average, prompting questions about whether the program effectively serves its intended populations.

Rojas is known as a healthcare entrepreneur with three successful startup exits and is an advocate for physician-owned hospitals and independent medical practice. He writes extensively on U.S. healthcare issues, focusing on improving patient outcomes and exposing inefficiencies within the current system. According to his LinkedIn profile, Rojas is also a well-known patient advocate who uses his platform to promote transparency and reform in the healthcare sector.

ReKlaim Health is a healthcare reform initiative founded by Rojas that focuses on advancing patient-centered and transparent healthcare policy. According to the Garden State Times, the organization critiques profit-driven practices within the system, including abuse of the 340B program, and supports physician-owned hospitals and independent medical practices. Its mission emphasizes reducing inefficiency and increasing access.