How a Company Makes Millions Off a Hospital Program Meant to Help the Poor

January 16, 2025

a mix of various types of pills

(New York Times) – A private business has helped supercharge a controversial federal drug program. Patients and insurers have been left with big bills.

The intention behind the program was for a small number of safety-net providers to have access to affordable drugs and be able to expand their care for needy patients. But instead, the program has exploded: Now, more than half of nonprofit hospitals in the United States take part. While some providers say it has helped keep their doors open, others — especially large nonprofit health systems — have been accused of maximizing payouts and swallowing the profits.

The program’s escalation has driven up health care costs for employers, patients and taxpayers, studies show. (Read More)