15 Nov Greed Pays Off for Eli Lilly
By 340B Matters
The drug industry already has some of the highest profit margins of any sector and they’re getting higher for Eli Lilly. U.S. revenues increased by a whopping 26% last quarter – that’s a big jump for a company that posted $6 billion in profits last year.
Part of the windfall is due to the drug giant illegally refusing 340B drug discounts to safety-net hospitals that partner with community pharmacies, leaving many patients with a tattered safety-net during a global health emergency.
Eli Lilly isn’t the only company cashing in on this underhanded scheme. Lilly is just one of nine gargantuan drug makers that have unilaterally stopped offering 340B discounts to pad their bottom lines. That has left safety-net hospitals and clinics with a $3.2 billion shortfall.
Safety-net providers use 340B savings to fund clinics and services for the underserved, improving health outcomes in their local communities. Unlike the drug industry which has notoriously high profit margins, these frontline hospitals often operate on razor-thin or negative margins. Some rely on 340B discounts just to keep their doors open.
It’s worth noting that drug companies actually make money by participating in the 340B Drug Discount Program…but that still isn’t enough to keep these bad actors from flagrantly breaking the law so they can rake in even more cash.
Greed is a strong motivator, and it’s paying off for Eli Lilly.
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