From Tom Schatz, Citizens Against Government Waste <[email protected]>
Subject Federal drug discount program takes from the poor, gives to the rich
Date August 28, 2025 2:16 PM
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[Image]([link removed]
inion?utm_source=3DCAGW15033)

John,

A federal drug discount program meant to reduce the cost of medicine to uni=
nsured populations is being exploited by hospitals and contract pharmacies =
in a classic reverse Robin Hood scheme =E2=80=93 and CAGW wants your input =
to help stop them.

[Image]([link removed]
inion?utm_source=3DCAGW15033)

Congress created a drug discount program known as 340B in 1992 to help fede=
rally funded of clinics and public hospitals in areas with large uninsured =
populations cover the cost of drugs and give discounts to patients.

But due to the failure to define an eligible patient, along with poor overs=
ight, large hospitals and their contract pharmacies are gaming the system b=
y pocketing the savings instead of passing them on to patients.

And some of them are doing this by taking the money away from hospitals and=
clinics in low-income communities and diverting millions to hospitals in w=
ealthier communities.

John, this is a classic reverse Robin Hood scheme that takes resources from=
the poor and gives them to the rich. It is one of the worst and most egreg=
ious examples of abuse of a federal healthcare program that we have ever se=
en.

Richmond Community Hospital in Virginia owned by Bon Secours, is a good cas=
e in point.

[Image]([link removed]
inion?utm_source=3DCAGW15033)

A September 24, 2022, New York Times article found that the hospital wasn=
=E2=80=99t reinvesting profits from drug sales into its facility that serve=
d low-income patients and improving their care.

Instead, it was investing the money in Bon Secours=E2=80=99 facilities in t=
he city=E2=80=99s wealthier neighborhoods.

This is unfortunately not the only city where hospitals in wealthier commun=
ities are taking money from low-income areas.

CAGW has been sounding the alarm about abuse of the 340B Drug Discount prog=
ram and the need for reforms for more than a decade.

We have pointed out the lack of transparency over the use of the 340B and h=
ow the failure to define a patient has caused program growth and exploitati=
on to explode across the country.

Now, we=E2=80=99d like you to join us.

John, do you support reforms like:

=E2=9C=94 Clearly defining who qualifies as a 340B patient?

=E2=9C=94 Requiring verification of patient eligibility for every prescript=
ion?

=E2=9C=94 Increasing transparency into the use of 340B funds?

=E2=9C=94 Requiring qualified patients to be treated at a 340B facility and=
receive a prescription related to the diagnosis for their care?

=E2=9C=94 Closing loopholes that allow hospitals in wealthy communities to =
siphon profits from hospitals in low-income communities?

Please take two minutes to complete our urgent survey about which 340B refo=
rms are most important to you. [[link removed]
evv.co/340b-give-your-opinion?utm_source=3DCAGW15033]

Your input will help us show Congress exactly what American taxpayers want =
to see changed.

[Take CAGW=E2=80=99s 340B Survey Today]([link removed]
-waste.revv.co/340b-give-your-opinion?utm_source=3DCAGW15033)

John, your continued support and engagement make this vital work possible.

Thank you for standing with us in this critical fight to protect vulnerable=
patients and stop hospitals and their contract pharmacies from gaming the =
system.

Together, we can stop the waste and abuse of the 340B program and ensure th=
at drug discounts are provided to those low-income, uninsured patients who =
Congress intended to help.

[Image]([link removed]
inion?utm_source=3DCAGW15033)

Thomas Schatz
President
Citizens Against Government Waste

P.S. Don't forget to take our quick survey about 340B reform priorities. Yo=
ur voice matters! [[link removed]
ive-your-opinion?utm_source=3DCAGW15033]

[Take CAGW=E2=80=99s 340B Reform Survey Today]([link removed]
ernment-waste.revv.co/340b-give-your-opinion?utm_source=3DCAGW15033)

317 Massachusetts Avenue, NE, Suite 300
Washington, DC 20002

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ne;">Take our 340B drug discount program reform survey today</div>
<div style=3D"display: none; max-height: 0px; overflow: hidden;">
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</div><table class=3D"nl-container" width=3D"100%" border=3D"0" cellpadding=
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" border=3D"0" cellpadding=3D"0" cellspacing=3D"0" role=3D"presentation" st=
yle=3D"mso-table-lspace:0;mso-table-rspace:0;color:#000;width:500px;margin:=
0 auto" width=3D"500"><tbody><tr><td class=3D"column column-1" width=3D"100=
%" style=3D"mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-alig=
n:left;border-bottom:0 solid transparent;border-left:0 solid transparent;bo=
rder-right:0 solid transparent;border-top:0 solid transparent;padding-botto=
m:5px;padding-top:5px;vertical-align:top"><table class=3D"image_block block=
-1" width=3D"100%" border=3D"0" cellpadding=3D"0" cellspacing=3D"0" role=3D=
"presentation" style=3D"mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><=
td class=3D"pad" style=3D"width:100%"><div class=3D"alignment" align=3D"cen=
ter"><div style=3D"max-width:500px"><a href=3D"[link removed]
/7/eyJhaSI6OTkyNjA2OTcsImUiOiJtZy1lbmM6OE0zZ2JZTDZydExUZFVpd09rN0Z6OEl2YW05=
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6AshedCXQ" target=3D"_blank"><img src=3D"[link removed]
net/cagw/CAGW+Logo+(1).png" style=3D"display:block;height:auto;border:0;wid=
th:100%" width=3D"500" alt=3D"CAGW Logo" title=3D"CAGW Logo" height=3D"auto=
"></a></div></div></td></tr></tbody></table><table class=3D"paragraph_block=
block-2" width=3D"100%" border=3D"0" cellpadding=3D"10" cellspacing=3D"0" =
role=3D"presentation" style=3D"mso-table-lspace:0;mso-table-rspace:0;word-b=
reak:break-word"><tbody><tr><td class=3D"pad"><div style=3D"color:#000;dire=
ction:ltr;font-family:Arial,Helvetica Neue,Helvetica,sans-serif;font-size:1=
6px;font-weight:400;letter-spacing:0;line-height:1.2;text-align:left;mso-li=
ne-height-alt:19px"><p style=3D"margin:0">John,</p></div></td></tr></tbody>=
</table><table class=3D"paragraph_block block-3" width=3D"100%" border=3D"0=
" cellpadding=3D"10" cellspacing=3D"0" role=3D"presentation" style=3D"mso-t=
able-lspace:0;mso-table-rspace:0;word-break:break-word"><tbody><tr><td clas=
s=3D"pad"><div style=3D"color:#000;direction:ltr;font-family:Arial,Helvetic=
a Neue,Helvetica,sans-serif;font-size:16px;font-weight:400;letter-spacing:0=
;line-height:1.2;text-align:left;mso-line-height-alt:19px"><p style=3D"marg=
in:0">
A federal drug discount program meant to reduce the cost of medicine to uni=
nsured populations is being exploited by hospitals and contract pharmacies =
in a classic reverse Robin Hood scheme &ndash; and CAGW wants your input to=
help stop them. &nbsp;</p></div></td></tr></tbody></table><table class=3D"=
image_block block-4" width=3D"100%" border=3D"0" cellpadding=3D"0" cellspac=
ing=3D"0" role=3D"presentation" style=3D"mso-table-lspace:0;mso-table-rspac=
e:0"><tbody><tr><td class=3D"pad" style=3D"width:100%"><div class=3D"alignm=
ent" align=3D"center"><div style=3D"max-width:309px"><a href=3D"[link removed]
.email.cagw.org/c/7/eyJhaSI6OTkyNjA2OTcsImUiOiJtZy1lbmM6OE0zZ2JZTDZydExUZFV=
pd09rN0Z6OEl2YW05Y3BCNTFDc3ZUS3l1S2kxND0iLCJyaSI6IjE0MzkzNjc0NzciLCJycSI6Ij=
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ifQ/F_mvRrD1OTxIOJ6AiK0-ng" target=3D"_blank"><img src=3D"[link removed]
60xwk.cloudfront.net/images/lid42/cagw-aug-c1-a.jpg" style=3D"display:block=
;height:auto;border:0;width:100%" width=3D"309" alt=3D"" title=3D"" height=
=3D"auto"></a></div></div></td></tr></tbody></table><table class=3D"paragra=
ph_block block-5" width=3D"100%" border=3D"0" cellpadding=3D"10" cellspacin=
g=3D"0" role=3D"presentation" style=3D"mso-table-lspace:0;mso-table-rspace:=
0;word-break:break-word"><tbody><tr><td class=3D"pad"><div style=3D"color:#=
000;direction:ltr;font-family:Arial,Helvetica Neue,Helvetica,sans-serif;fon=
t-size:16px;font-weight:400;letter-spacing:0;line-height:1.2;text-align:lef=
t;mso-line-height-alt:19px"><p style=3D"margin:0;margin-bottom:16px">
Congress created a drug discount program known as 340B in 1992 to help fede=
rally funded of clinics and public hospitals in areas with large uninsured =
populations cover the cost of drugs and give discounts to patients. &nbsp;<=
/p><p style=3D"margin:0;margin-bottom:16px">But due to the failure to defin=
e an eligible patient, along with poor oversight, large hospitals and their=
contract pharmacies are gaming the system by pocketing the savings instead=
of passing them on to patients. &nbsp;</p><p style=3D"margin:0;margin-bott=
om:16px">And some of them are doing this by taking the money away from hosp=
itals and clinics in low-income communities and diverting millions to hospi=
tals in wealthier communities.</p><p style=3D"margin:0;margin-bottom:16px">
<strong>John, this is a classic reverse Robin Hood scheme that takes resour=
ces from the poor and gives them to the rich. It is one of the worst and mo=
st egregious examples of abuse of a federal healthcare program that we have=
ever seen.</strong>&nbsp;</p><p style=3D"margin:0">Richmond Community Hosp=
ital in Virginia owned by Bon Secours, is a good case in point. &nbsp;</p><=
/div></td></tr></tbody></table><table class=3D"image_block block-6" width=
=3D"100%" border=3D"0" cellpadding=3D"0" cellspacing=3D"0" role=3D"presenta=
tion" style=3D"mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><td class=
=3D"pad" style=3D"width:100%"><div class=3D"alignment" align=3D"center"><di=
v style=3D"max-width:500px"><a href=3D"[link removed]
SI6OTkyNjA2OTcsImUiOiJtZy1lbmM6OE0zZ2JZTDZydExUZFVpd09rN0Z6OEl2YW05Y3BCNTFD=
c3ZUS3l1S2kxND0iLCJyaSI6IjE0MzkzNjc0NzciLCJycSI6IjAyLWIyNTI0MC01ZTYxNjIxYjR=
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Q" target=3D"_blank"><img src=3D"[link removed]
es/lid42/cagw-aug-c1-b.jpg" style=3D"display:block;height:auto;border:0;wid=
th:100%" width=3D"500" alt=3D"" title=3D"" height=3D"auto"></a></div></div>=
</td></tr></tbody></table><table class=3D"paragraph_block block-7" width=3D=
"100%" border=3D"0" cellpadding=3D"10" cellspacing=3D"0" role=3D"presentati=
on" style=3D"mso-table-lspace:0;mso-table-rspace:0;word-break:break-word"><=
tbody><tr><td class=3D"pad"><div style=3D"color:#000;direction:ltr;font-fam=
ily:Arial,Helvetica Neue,Helvetica,sans-serif;font-size:16px;font-weight:40=
0;letter-spacing:0;line-height:1.2;text-align:left;mso-line-height-alt:19px=
"><p style=3D"margin:0;margin-bottom:16px">
A September 24, 2022,<em> New York Times</em> article found that the hospit=
al wasn&rsquo;t reinvesting profits from drug sales into its facility that =
served low-income patients and improving their care.&nbsp;</p><p style=3D"m=
argin:0;margin-bottom:16px"><em>Instead, it was investing the money in Bon =
Secours&rsquo; facilities in the city&rsquo;s wealthier neighborhoods.</em>=
&nbsp;</p><p style=3D"margin:0;margin-bottom:16px">
<em>This is unfortunately not the only city where hospitals in wealthier co=
mmunities are taking money from low-income areas.</em></p><p style=3D"margi=
n:0;margin-bottom:16px">CAGW has been sounding the alarm about abuse of the=
340B Drug Discount program and the need for reforms for more than a decade=
.&nbsp;</p><p style=3D"margin:0;margin-bottom:16px">
We have pointed out the lack of transparency over the use of the 340B and h=
ow the failure to define a patient has caused program growth and exploitati=
on to explode across the country.&nbsp;</p><p style=3D"margin:0;margin-bott=
om:16px"><em>Now, we&rsquo;d like you to join us.</em>&nbsp;&nbsp;</p><p st=
yle=3D"margin:0;margin-bottom:16px"><strong>John, do you support reforms li=
ke: </strong>&nbsp;</p><p style=3D"margin:0;margin-bottom:16px">
=E2=9C=94 Clearly defining who qualifies as a 340B patient?&nbsp;</p><p sty=
le=3D"margin:0;margin-bottom:16px">=E2=9C=94 Requiring verification of pati=
ent eligibility for every prescription?&nbsp;</p><p style=3D"margin:0;margi=
n-bottom:16px">=E2=9C=94 Increasing transparency into the use of 340B funds=
?&nbsp;</p><p style=3D"margin:0;margin-bottom:16px">=E2=9C=94 Requiring qua=
lified patients to be treated at a 340B facility and receive a prescription=
related to the diagnosis for their care?&nbsp;</p><p style=3D"margin:0;mar=
gin-bottom:16px">=E2=9C=94 Closing loopholes that allow hospitals in wealth=
y communities to siphon profits from hospitals in low-income communities?&n=
bsp;</p><p style=3D"margin:0;margin-bottom:16px"><a href=3D"[link removed]
il.cagw.org/c/7/eyJhaSI6OTkyNjA2OTcsImUiOiJtZy1lbmM6OE0zZ2JZTDZydExUZFVpd09=
rN0Z6OEl2YW05Y3BCNTFDc3ZUS3l1S2kxND0iLCJyaSI6IjE0MzkzNjc0NzciLCJycSI6IjAyLW=
IyNTI0MC01ZTYxNjIxYjRjZjU0ZWFjYjFjM2NhY2U5NDlkN2JiOCIsIm0iOmZhbHNlLCJ1aSI6I=
jMiLCJ1biI6IiIsInUiOiJodHRwczovL2NpdGl6ZW5zLWFnYWluc3QtZ292ZXJubWVudC13YXN0=
ZS5yZXZ2LmNvLzM0MGItZ2l2ZS15b3VyLW9waW5pb24_dXRtX3NvdXJjZT1DQUdXMTUwMzMifQ/=
AANBWEuXqYMCNk-8KzIFIA" target=3D"_blank" style=3D"text-decoration: underli=
ne; color: #0068A5;" rel=3D"noopener"><strong>Please take two minutes to co=
mplete our urgent survey about which 340B reforms are most important to you=
.</strong></a></p><p style=3D"margin:0"><strong>Your input will help us sho=
w Congress exactly what American taxpayers want to see changed.</strong>&nb=
sp;</p></div></td></tr></tbody></table><table class=3D"button_block block-8=
" width=3D"100%" border=3D"0" cellpadding=3D"10" cellspacing=3D"0" role=3D"=
presentation" style=3D"mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><t=
d class=3D"pad"><div class=3D"alignment" align=3D"center"><a href=3D"https:=
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x; border-right: 0px solid transparent; border-top: 0px solid transparent; =
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ht: 20px; text-align: center; width: 80%; word-break: keep-all; letter-spac=
ing: normal;"><span style=3D"word-break: break-word; line-height: 32px;"><s=
trong>Take CAGW&rsquo;s 340B Survey Today</strong></span></span>
<!--[if mso]></center></v:textbox></v:roundrect><![endif]--></a></div></td>=
</tr></tbody></table><table class=3D"paragraph_block block-9" width=3D"100%=
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ter-spacing:0;line-height:1.2;text-align:left;mso-line-height-alt:19px"><p =
style=3D"margin:0;margin-bottom:16px">John, your continued support and enga=
gement make this vital work possible.&nbsp;&nbsp;</p><p style=3D"margin:0;m=
argin-bottom:16px">Thank you for standing with us in this critical fight to=
protect vulnerable patients and stop hospitals and their contract pharmaci=
es from gaming the system.&nbsp;&nbsp;</p><p style=3D"margin:0">
Together, we can stop the waste and abuse of the 340B program and ensure th=
at drug discounts are provided to those low-income, uninsured patients who =
Congress intended to help.</p></div></td></tr></tbody></table><table class=
=3D"image_block block-10" width=3D"100%" border=3D"0" cellpadding=3D"0" cel=
lspacing=3D"0" role=3D"presentation" style=3D"mso-table-lspace:0;mso-table-=
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<a href=3D"[link removed]
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<table class=3D"paragraph_block block-11" width=3D"100%" border=3D"0" cellp=
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Helvetica,sans-serif;font-size:16px;font-weight:400;letter-spacing:0;line-h=
eight:1.2;text-align:left;mso-line-height-alt:19px"><p style=3D"margin:0;ma=
rgin-bottom:16px">Thomas Schatz<br>President<br>Citizens Against Government=
Waste</p><p style=3D"margin:0">
<strong>P.S. <a href=3D"[link removed]
ImUiOiJtZy1lbmM6OE0zZ2JZTDZydExUZFVpd09rN0Z6OEl2YW05Y3BCNTFDc3ZUS3l1S2kxND0=
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aW5pb24_dXRtX3NvdXJjZT1DQUdXMTUwMzMifQ/GJtdLtm7lxnL8q1_zakJ0A" target=3D"_b=
lank" style=3D"text-decoration: underline; color: #0068a5;" rel=3D"noopener=
">Don't forget to take our quick survey about 340B reform priorities. Your =
voice matters!</a></strong></p></div></td></tr></tbody></table><table class=
=3D"button_block block-12" width=3D"100%" border=3D"0" cellpadding=3D"10" c=
ellspacing=3D"0" role=3D"presentation" style=3D"mso-table-lspace:0;mso-tabl=
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waste.revv.co/340b-give-your-opinion?utm_source=3DCAGW15033" style=3D"heig=
ht:42px;width:384px;v-text-anchor:middle;" arcsize=3D"10%" fillcolor=3D"#ef=
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x; border-right: 0px solid transparent; border-top: 0px solid transparent; =
color: #ffffff; display: inline-block; font-family: Arial, Helvetica Neue, =
Helvetica, sans-serif; font-size: 16px; font-weight: 400; mso-border-alt: n=
one; padding-bottom: 5px; padding-top: 5px; padding-left: 20px; padding-rig=
ht: 20px; text-align: center; width: 80%; word-break: keep-all; letter-spac=
ing: normal;"><span style=3D"word-break: break-word; line-height: 32px;"><s=
trong>Take CAGW&rsquo;s 340B Reform Survey Today</strong></span></span>
<!--[if mso]></center></v:textbox></v:roundrect><![endif]--></a></div></td>=
</tr></tbody></table><table class=3D"paragraph_block block-13" width=3D"100=
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<p style=3D"margin:0"><br>317 Massachusetts Avenue, NE, Suite 300<br>Washin=
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_block block-14" width=3D"100%" border=3D"0" cellpadding=3D"5" cellspacing=
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d09rN0Z6OEl2YW05Y3BCNTFDc3ZUS3l1S2kxND0iLCJyaSI6IjE0MzkzNjc0NzciLCJycSI6IjA=
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------=_Part_111001692_744157145.1756390568684--

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[Image]([link removed])

John,

A federal drug discount program meant to reduce the cost of medicine to uninsured populations is being exploited by hospitals and contract pharmacies in a classic reverse Robin Hood scheme – and CAGW wants your input to help stop them.

[Image]([link removed])

Congress created a drug discount program known as 340B in 1992 to help federally funded of clinics and public hospitals in areas with large uninsured populations cover the cost of drugs and give discounts to patients.

But due to the failure to define an eligible patient, along with poor oversight, large hospitals and their contract pharmacies are gaming the system by pocketing the savings instead of passing them on to patients.

And some of them are doing this by taking the money away from hospitals and clinics in low-income communities and diverting millions to hospitals in wealthier communities.

John, this is a classic reverse Robin Hood scheme that takes resources from the poor and gives them to the rich. It is one of the worst and most egregious examples of abuse of a federal healthcare program that we have ever seen.

Richmond Community Hospital in Virginia owned by Bon Secours, is a good case in point.

[Image]([link removed])

A September 24, 2022, New York Times article found that the hospital wasn’t reinvesting profits from drug sales into its facility that served low-income patients and improving their care.

Instead, it was investing the money in Bon Secours’ facilities in the city’s wealthier neighborhoods.

This is unfortunately not the only city where hospitals in wealthier communities are taking money from low-income areas.

CAGW has been sounding the alarm about abuse of the 340B Drug Discount program and the need for reforms for more than a decade.

We have pointed out the lack of transparency over the use of the 340B and how the failure to define a patient has caused program growth and exploitation to explode across the country.

Now, we’d like you to join us.

John, do you support reforms like:

✔ Clearly defining who qualifies as a 340B patient?

✔ Requiring verification of patient eligibility for every prescription?

✔ Increasing transparency into the use of 340B funds?

✔ Requiring qualified patients to be treated at a 340B facility and receive a prescription related to the diagnosis for their care?

✔ Closing loopholes that allow hospitals in wealthy communities to siphon profits from hospitals in low-income communities?

Please take two minutes to complete our urgent survey about which 340B reforms are most important to you. [[link removed]]

Your input will help us show Congress exactly what American taxpayers want to see changed.

[Take CAGW’s 340B Survey Today]([link removed])

John, your continued support and engagement make this vital work possible.

Thank you for standing with us in this critical fight to protect vulnerable patients and stop hospitals and their contract pharmacies from gaming the system.

Together, we can stop the waste and abuse of the 340B program and ensure that drug discounts are provided to those low-income, uninsured patients who Congress intended to help.

[Image]([link removed])

Thomas Schatz
President
Citizens Against Government Waste

P.S. Don't forget to take our quick survey about 340B reform priorities. Your voice matters! [[link removed]]

[Take CAGW’s 340B Reform Survey Today]([link removed])

317 Massachusetts Avenue, NE, Suite 300
Washington, DC 20002

Unsubscribe [[link removed]]
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