Council backs hospital request to protect 340B savings and asks state to curb manufacturer restrictions

The Warwick City Council approved (vote: 7–1 with 1 recusal) a resolution urging the General Assembly to support legislation intended to protect 340B program savings for hospitals and community health centers that serve high volumes of uninsured and underinsured patients.

Lisa Tommaso, Senior Vice President at the Hospital Association of Rhode Island, told the council the 340B federal program generates important savings for safety‑net providers and that, in recent years, manufacturer practices have restricted where discounted drugs can be dispensed — diverting savings away from hospitals and health centers. Tommaso said hospitals in Rhode Island have faced substantial operating shortfalls tied in part to these changes: "Between 2022 and 2024, hospitals collectively lost $259,000,000," she said, urging the council to support the state-level legislation and accompanying reporting requirements.

Council members asked about accountability and oversight. Tommaso said proposed legislation would include reporting requirements and that hospitals and health centers support transparency to ensure funds are used appropriately; she said federal audit authority remains in place and that any state reporting mechanism would be public-facing and intended to complement federal oversight.

The council voted in favor of the resolution and directed staff to transmit the council’s support to Warwick’s General Assembly delegation. The vote was taken under unanimous-consent procedures earlier in the meeting and recorded per roll-call.