The Health Resources & Services Administration (HRSA) reported that discounted drug purchases through the 340B Drug Pricing Program exceeded $100 billion in 2025. That’s a 23% increase over 2024 and reflects a program that has doubled in size in just five years.
Measured before 340B discounts are applied, the program exceeded $180 billion in drug purchases in 2025.
Sources: HRSA/CBO, IQVIA & Drug Channels
Who dominates 340B purchasing?
According to HRSA, disproportionate share hospitals (DSHs) who participate in the program accounted for $79.2 billion in 340B acquisition cost in 2025, nearly 80% of all purchases made through the program. At $41.8 billion in 2022, purchases by these entities surged nearly 90% in just three years. These hospitals tend to be well-funded, urban teaching facilities that often pursue expansion strategies that prioritize wealthy communities over vulnerable populations.
The HRSA data reflects the experience of Johnson & Johnson, which provided $7.4 billion in 340B discounts, largely to DSH hospitals participating in 340B, in 2024.
What does the 340B Program’s growth tell us?
The program’s rapid growth underscores the need for greater transparency to understand how 340B-generated revenue is being used and whether low-income and vulnerable patients are benefiting.
A report from the state of Minnesota found that the state’s largest nonprofit hospitals–not the systems providing the most charity care–were the largest beneficiaries of 340B. Smaller hospitals and clinics not only received a smaller share of 340B revenue, but those facilities saw much of the benefit of 340B extracted by third-party middlemen.
While many HRSA grantees are subject to federal reporting requirements, there is no federal requirement for hospitals to publicly report how much 340B revenue they retain, how those funds are invested or whether patients benefit through lower prescription drug costs or expanded access to care.
What should policymakers do to fix the 340B Program?
Johnson & Johnson has advocated for a set of common-sense principles for 340B reform designed to protect the Americans who most need access.
- Any changes must put patients, not hospitals, at the center of the program.
- Processes that allow for duplicate discounts–which create waste and inefficiencies in the system–must be eliminated.
- State policymakers should concentrate on the effects of 340B on state Medicaid programs and interactions with other state healthcare funding.
Only by focusing on the patient can we return 340B to its mission and restore the impact of this critical program.
© Johnson & Johnson and its affiliates 2026 07/26 cp-594137v1