Rural Healthcare Safety Net Providers Appeal to Congress to Protect 340B

WASHINGTON--(BUSINESS WIRE)--A network of over 30 rural and urban nonprofit safety net providers appealed to congressional leaders to protect the 340B Drug Pricing Program, highlighting how the program enables the high-quality care they provide to medically underserved Americans. The 340B Rural Advocacy Network released the letter prior to a U.S. Senate Health Education Labor and Pensions Committee hearing on the 340B program scheduled for later this week.

The letter says in part, “The vital savings from discounted drug purchases offset losses from the uncompensated care we deliver, allowing us to keep our doors open. Even with these critical savings, from 2005 to 2024, 196 rural hospitals closed. The avalanche of hospital closures shows no sign of abating. From 2017 until today, 62 rural hospitals closed while only 10 opened. Many for-profit entities limit how we attain the savings Congress intended for nonprofit providers to stretch scarce federal resources as far as possible.”

The providers stressed that contract pharmacy restrictions imposed by drug companies coupled with how pharmacy benefit managers siphon off savings lawfully entitled to providers are crippling how they resource care. Many fear the squeeze imposed by for-profit entities will force them to close their doors if Congress does not step in to stop the abusive practices. “The patients that received care from now shuttered 340B providers will turn to emergency rooms for primary health services, ultimately ending up on Medicaid rolls at the taxpayer’s expense. We are eager to work with Congress to protect the 340B program,” said the providers.

See the 340B Rural Advocacy Network letter here:

Link to live Senate HELP hearing, Thursday, October 23, 2025, 10:00 a.m. EDT:

The 340B Program: Examining Its Growth a... | Senate Committee on Health, Education, Labor and Pensions

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