A new report from the Minnesota Department of Health found that covered entities in the state earned a collective net 340B revenue of at least $1.34 billion in 2024 – more than twice the net revenue reported in 2023.
The report found Minnesota’s largest 340B hospitals generated the lion’s share (80%) of all statewide net 340B revenue, totaling $1 billion. In contrast, safety-net clinics, such as Federally Qualified Health Centers and tribal health centers, generated the least revenue last year.
The figures indicate 340B savings are likely not flowing to under-resourced health facilities for at-risk populations, a departure from the original intent of the 340B program. Perhaps even more eye-popping than the statistics is the fact that Minnesota is the only state to publish any analysis of 340B data, underscoring the need for greater transparency and reporting for the program.
In the spirit of “necessary transparency for 340B program integrity,” Novo Nordisk issued a notice that beginning April 1, all 340B covered entities will be required to submit pharmacy and medical claims data for every 340B dispense as a condition for accessing the manufacturer discounts.
This could signal a broader industry trend, following in the footsteps of Eli Lilly’s similar reporting mandate from two months ago. The American Hospital Association immediately pushed back, petitioning federal regulators to block such drugmaker requirements on grounds of increased costs and reporting burdens for already strapped health systems.
While the 340B environment remains muddy, what’s clear is that increased data transparency will be essential to ensure the 340B program is serving those as intended.
– Rachel Bridges, Senior Director