ACH congressional briefing highlighted how 340B savings sustain essential care in rural and underserved communities

WASHINGTON — Community health center leaders urged Congress to protect and strengthen the 340B Drug Pricing Program during a congressional briefing hosted Wednesday on Capitol Hill by Advocates for Community Health (ACH), a leading nonpartisan, nonprofit membership organization representing some of the nation’s most innovative community health centers.

The briefing, “The 340B Program: A Lifeline for Community Health Centers,” featured expert health center CEOs Parinda Khatri, PhD, of River Valley Health in Tennessee; Robert P. Palussek of Legacy Community Health in Texas; and Matthew Stinson, MD, of Jordan Valley Health in Missouri. Together with ACH CEO Amanda Pears Kelly, the panelists shared real-world examples of how health centers reinvest 340B savings into patient care and warned that proposals to replace upfront discounts with a rebate model would undermine access to essential services.

“340B savings allow health centers to bridge critical funding gaps and deliver comprehensive care that would otherwise be unavailable in many communities,” said Pears Kelly. “A rebate model would delay those savings, impose substantial administrative costs, and shift financial risk onto the very providers working every day to ensure patients can access affordable medications and high-quality care.” 

She added, “The impact to patients as services and points of access will need to be scaled back as a result cannot be overstated. ACH has always been in favor of 340B Program reform, however, this moves the entire program and the foundation of the safety net in the wrong direction.”

Panelists emphasized that 340B savings support far more than prescription drug access. Health centers are required to reinvest those resources directly into comprehensive primary care, including pharmacy services, maternal health, behavioral health, mobile clinics and rural healthcare programs. These investments are foundational to making care accessible to millions of Americans living in rural and underserved communities.

“340B cost savings are community resources, and at River Valley Health and all community health centers, we are vigilant, almost evangelical, about our stewardship of those dollars as community resources,” Khatri told briefing attendees. “So we want to tell this story of how these savings directly benefit our communities.”

The proposed rebate model would replace the current upfront discount with a system requiring health centers to purchase medications at a higher price and seek reimbursement later. Panelists cautioned that this approach would create significant cash-flow challenges, payment delays, and administrative burdens, ultimately leaving fewer resources available for patient care.

“Health centers representing just 6% of the total 340B spending, everyone agrees that health centers are not the problem,” Stinson said. “So why aren’t we being protected, whether in the rebate proposal and through reform?” 

These challenges come at a time when health centers are already confronting rising operating costs, increased uninsured and uncompensated care, persistent workforce shortages, and growing demand for services, making the stability of the 340B program more essential than ever.

“We anticipate having to hire two to three additional employees to handle the reporting and administrative requirements, and there will be new technology investments to consider,” Palussek said. “Ultimately,  patients will bear the burden because fewer resources will be available to reinvest in their care.”

Health center leaders welcomed thoughtful 340B reforms, including appropriate transparency and accountability provisions that promote the program’s long-term stability without creating new barriers to participation or reducing patient access.

ACH thanks the congressional offices, healthcare leaders, advocates, and other stakeholders who joined the briefing and extends its sincere gratitude to the panelists for sharing their expertise and experiences.

“Health centers support transparency, accountability, and a strong, sustainable 340B program,” Pears Kelly added. “Any reform must preserve what makes 340B work: timely savings, and the ability to reinvest directly in patients. Protecting those principles will help ensure that millions of Americans can continue to receive the care they need.”

About Advocates for Community Health

Established in 2021, Advocates for Community Health (ACH) is a nonpartisan, nonprofit membership organization of community health centers dedicated to forward-thinking and ambitious federal policy and advocacy on behalf of health centers, their patients, and their communities. To learn more, visit advocatesforcommunityhealth.org.

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