New analysis shows 340B tax-exempt hospitals provided more than $64 billion in total benefits to their communities

WASHINGTON, DC (September 10, 2020) – Improving the health of their communities is at the heart of every hospital’s mission. As one example, in a new analysis released today, the American Hospital Association (AHA) found that 340B tax-exempt hospitals provided more than $64.3 billion in total benefits to their communities in 2017 alone, the most recent year for which comprehensive data is available. This is an increase from the more than $56 billion in total benefits that 340B tax-exempt hospitals provided to their communities in 2016. The analysis also showed that 340B tax-exempt hospitals’ total community benefits were 13.8 percent of their total expenses in 2017.

“Hospitals and health systems of all kinds, sizes and forms of ownership deliver a wide variety of benefits designed to meet the unique needs of their communities,” said AHA President and CEO Rick Pollack. “This new report once again confirms the immense value of the 340B drug savings program, which allows those eligible hospitals in particular to provide a unique range of important programs and services to their patients and communities, many of which would otherwise be unavailable.”

Congress created the 340B drug savings program to help those hospitals serving vulnerable communities stretch scarce federal resources as far as possible to support essential services for their communities. Because it is funded by drug company discounts, not federal dollars, 340B doesn’t cost the government one penny – but it makes a big difference to vulnerable communities. This analysis demonstrates that 340B hospitals are meeting and exceeding that goal.

In return for being exempt from federal taxes, non-profit hospitals are responsible for publicly reporting on the variety of benefits they deliver. These include financial support for those in need as well as a wide range of programs and services designed to meet the current and future health needs of all of those they serve. Examples include programs to address identified community health needs, such as access to prescription drugs for low-income populations, free vaccinations, chronic disease management programs, transportation services for follow-up appointments and mental health services.

In July, the AHA released a separate analysis showing that all tax-exempt hospitals provided $100 billion in total benefits to their communities in 2017.

Today’s full analysis can be found HERE.  


Contact:       Colin Milligan, (202) 638-5491
                     Marie Johnson, (202) 626-2351 

Related Resources

AHA, others express support of the 340B federal drug pricing program and strongly encourage Congress to protect the program as they consider broader changes to…
Improving the health of their communities is at the heart of every hospital’s mission. For example, tax-exempt hospitals annually demonstrate accountability to…
Beginning in 2018, the AHA contracted with Guidestar to create a file of all Schedule H forms electronically submitted by hospitals to the IRS for the most…
Tax-exempt hospitals are required to publicly report on the ways in which they improve the health of the communities they serve yearly through the IRS Form 990…
Fact Sheets
The COVID-19 pandemic has altered hospitals’ payer mix, which for some hospitals has temporarily lowered their disproportionate share hospital (DSH) percentage…
Issue Landing Page
The mission of all hospitals and health systems, regardless of size and type of ownership, is to care for their patients and communities. In addition to…