Rhode Island leaders discuss legislation to protect 340B drug savings for hospitals

The Warwick City Council meeting held on June 2, 2025, featured a significant discussion regarding the proposed Affordable Prescription Drugs Cost Act, presented by the Senior Vice President of the Hospital Association of Rhode Island. The act aims to address issues related to the federal 340B program, which was established in the 1990s to provide savings for hospitals and health centers that serve a high volume of uninsured and underinsured individuals.

The speaker highlighted that four hospitals in Rhode Island, including Kent Hospital, Woman and Infants, Landmark Medical Center, and Rhode Island Hospital, qualify for these savings. Additionally, all health centers in the state participate in the program. The proposed legislation seeks to prevent drug manufacturers from diverting these savings for their own profit, a practice that has reportedly siphoned tens of millions of dollars from the Rhode Island healthcare system over the past five years.

The speaker emphasized the importance of this legislation in ensuring that hospitals can continue to provide high-quality medical services to vulnerable populations, particularly in the Warwick area. The act has previously been upheld in court, suggesting a strong legal foundation for its implementation.

Councilman Ladder Sue expressed initial support for the legislation but raised concerns based on his research over the weekend. He noted that while the 340B program was intended to help vulnerable patients access medications, there are claims that large hospitals have been using it to increase profits without clear evidence of patient benefit.

The meeting underscored the ongoing debate surrounding healthcare funding and access in Rhode Island, particularly as it relates to the needs of the community and the role of legislation in safeguarding healthcare resources. Further discussions and follow-up actions are expected as the council considers the implications of the proposed act.