The Michigan Senate’s recent passage of Senate Bill 1179, aimed at regulating the federal 340B program, could be compared to a wolf in sheep’s clothing. Unfortunately, the passed legislation with transparency amendment seems to fail to answer how transparency will be measured. While we appreciate and encourage transparency, the looming question is how will transparency be measured?
As advocates for health equity, we at BlackDoctor.org are sounding an alarm about the lack of accountability and transparency in how hospitals and others use their 340B savings to benefit underserved communities. We need to question an omission in measurement that undermines the program’s original intent to extend healthcare access to those who need it most.
The 340B program allows eligible hospitals and clinics to purchase outpatient drugs at significantly reduced prices, intending that these savings be reinvested to improve care for low-income and underserved patients. However, there remains little to no way to measure how hospitals and others utilize these funds. How do we measure if hospitals and clinicals are expanding services in marginalized communities? Are drug prices being reduced for vulnerable populations?
Senate Bill 1179 imposes robust reporting requirements on manufacturers, yet hospitals—the primary beneficiaries of 340B discounts—are not required to provide detailed, publicly available reports on how their savings are used. Without such transparency, there is no way to ensure that 340B dollars are being spent as intended: to enhance healthcare access for those who are most in need.
This lack of accountability disproportionately harms our Black and Brown communities, which often rely on safety-net hospitals and community clinics to access affordable healthcare. If hospitals are using their 340B savings to pad their bottom lines instead of addressing disparities, underserved communities continue to bear the brunt of inequitable healthcare systems. Transparency is not merely a bureaucratic requirement; it is a moral imperative to ensure that the program’s benefits reach its intended recipients.
We call on Michigan lawmakers to amend this legislation to include comprehensive reporting requirements for 340B hospitals. These entities should be required to publicly disclose how much they save through the program and, more importantly, how those savings are reinvested into patient care and community health initiatives. Such transparency would build trust in the program, protect its mission, and ensure that 340B dollars are directed toward reducing health inequities.
In a state where racial disparities in health outcomes persist, Michigan cannot afford to allow the 340B program’s potential to go unrealized. Black communities in Michigan deserve to know how hospitals are leveraging these discounts to improve health equity. Accountability and transparency are essential to restoring public confidence and ensuring the 340B program fulfills its promise to uplift the underserved.
We ask Michigan House members to reject this legislation and demand more direction on how transparency will be measured from hospitals and health clinics. The health and well-being of our most vulnerable populations depend on us.
