(205) Income, Health and Racial Gaps Between 340B Hospitals, Child Sites, and Nearby Neighborhoods

Background: : The 340B Drug Pricing Program has grown exponentially over the past decade. The number of 340B hospital child sites exceeded 34,000 in 2023,
compared to just over 7,000 in 2013. It is of acute interest to payers and policy makers to understand where the program is expanding.

Objective: : Estimate neighborhood differences between 340B child sites, parent covered entities (CEs), and other neighborhoods near CEs.

Methods: : We created a unique dataset that contains CE and child site characteristics, and Zip Code Tabulation Area (ZCTA) socioeconomic and health data in 2022 for over 12,000 out-of-ZCTA code 340B hospital child sites. We computed differences across key measures including median income, uninsured and unemployment rates, age, and disease prevalence between each pair and between the child site’s ZCTA and all other ZCTAs within a 10-mile radius of the CE.

Results: : Median child site ZCTA income is 28% higher than CE ZCTA income and about 11% higher than CE neighborhood income. Uninsured rates (10% lower than CE ZCTA and 11% lower than CE neighborhood ZCTA) and unemployment rates (17%/15%) are lower in child site areas and the White population share is higher (10%/10%). Average health status is better in child site ZCTAs despite higher median age.

Conclusions: : Our analysis suggests that 340B hospital entities place child sites in neighborhoods that are wealthier, healthier, better insured and less diverse that the neighborhoods of both the parent site and others within a 10-mile radius.

Sponsorship:: Johnson & Johnson Scientific Affairs