ADAP Advocacy Releases Infographics on Hospital CEO Compensation and 340B Drug Pricing Program

ADAP Advocacy has published a two-part infographic series examining the relationship between hospital CEO compensation and the 340B Drug Pricing Program. The infographics, released as part of the organization's 340B Project, highlight how manufacturer rebates intended to help low-income patients are instead being used to fund excessive executive compensation packages. The 340B Program was originally designed to assist poor patients in accessing healthcare services, but has grown to $66 billion while potentially being misdirected toward hospital executive pay.

The first infographic, titled '340B Too Big to Fail – Executive Compensation – Part 1,' focuses on the significant pay gap between hospital CEOs and frontline nurses. It demonstrates how the program's financial benefits, meant to support patient care for vulnerable populations, are being diverted to executive compensation. This diversion occurs despite the program's explicit purpose of helping impoverished patients obtain necessary medical services and medications through safety-net providers.

The second infographic, '340B Too Big to Fail – Executive Compensation – Part 2,' shows how CEO compensation has increased exponentially after hospitals became eligible to participate in the 340B Program. The data illustrates a correlation between program participation and substantial growth in executive pay packages, suggesting that the program's financial benefits are not reaching their intended recipients. Both infographics are available for download at https://www.adapadvocacy.org/publications.html#i as part of the ongoing national advocacy campaign questioning whether the 340B Drug Pricing Program has become 'too big to fail.'

These publications raise important questions about program accountability and whether the 340B Drug Pricing Program is fulfilling its original mission. The program's substantial growth to $66 billion in manufacturer rebates represents significant financial resources that should theoretically benefit low-income patients, but the infographics suggest these funds may be subsidizing executive compensation instead. This situation has implications for healthcare equity and the effective use of public health resources, particularly as vulnerable populations continue to face barriers in accessing affordable medications and care.

The infographics complement ADAP Advocacy's recently released commercial materials and contribute to broader discussions about healthcare system transparency and the appropriate use of drug pricing program savings. As the 340B Program continues to expand, these findings highlight the need for greater oversight and accountability measures to ensure that program benefits reach their intended beneficiaries rather than being absorbed by administrative costs and executive compensation.