ADAP Advocacy has published a two-part infographic series examining the relationship between hospital CEO compensation and the 340B Drug Pricing Program. The advocacy group's analysis suggests that manufacturer rebates intended for patient care are being diverted to fund what they characterize as excessive compensation packages for hospital executives. The first infographic, '340B Too Big to Fail – Executive Compensation – Part 1,' focuses on the growing disparity between CEO pay and frontline nurse compensation while emphasizing that the 340B program was specifically created to help poor patients access essential healthcare services.
According to the organization, despite the program's expansion to $66 billion in scale, the original mission of serving low-income patients is being compromised by financial practices that prioritize executive enrichment. The second infographic, '340B Too Big to Fail – Executive Compensation – Part 2,' documents how CEO compensation has increased exponentially following hospitals' eligibility to participate in the 340B Program. ADAP Advocacy contends that the program was never intended to enrich healthcare executives but rather to support vulnerable patient populations.
The advocacy group's national campaign questions whether the 340B Drug Pricing Program has become 'too big to fail,' drawing parallels to financial institutions during the 2008 economic crisis. Both infographics are available for download through ADAP Advocacy's publications portal. The materials complement the organization's recently released commercial and form part of their broader campaign to increase transparency and accountability within the 340B Program.
The release of these infographics comes amid ongoing national debate about healthcare costs and executive compensation in the nonprofit hospital sector. ADAP Advocacy's analysis suggests a direct correlation between hospital participation in the 340B Program and dramatic increases in CEO compensation, raising fundamental questions about whether the program is achieving its intended purpose of expanding access to care for vulnerable populations. The organization maintains that the growing disparity between executive pay and frontline healthcare worker compensation highlights systemic issues within the program's implementation and oversight.
