340B Health Names New Board Chair Amid Federal Focus on Discounted Drug Program

Amid looming changes for the federal discounted drug program of the same name, 340B Health has named a new Board of Directors Chair for the organization representing more than 1,600 providers that participate in the program.

The selection is Charlton Park (MBA, MHSM), Chief Financial Officer and Chief Analytics Officer for University of Utah Health – the only academic medical center in the Mountain West region, currently serving Utah and five surrounding states.

“It is a privilege to take on this leadership role and support 340B Health’s critical mission, Park said in a statement. “In Utah, we see firsthand how 340B helps at-risk patients and underserved communities access care they would otherwise go without. At a time when many families are one illness or one bill away from a crisis, strengthening 340B is more critical than ever.”

In a news release, 340B Health called Park a “transformative leader who works collaboratively with leadership across health sciences to increase value to patients and improve organizational alignment” who has also “played an important role in the development of various integration models to increase alignment between physician specialties and the hospital.”

“Park is a data-driven leader and is invested in using data and analytics to increase value across the clinical enterprise,” the release read. “He works closely with clinical, operational, and financial leaders throughout the organization, promoting the strategic use of data and analytics to drive decision-making.”

Officials noted that Park began his career as a health information research analyst at Arizona State University’s Center for Health Information and Research. He later joined UnitedHealth Group, where he worked until 2009, when he joined the University of Utah.

University of Utah Health occupies a unique position within its region, as a Disproportionate Share Hospital (DSH) and safety-net provider serving as a Level 1 trauma center – and the only hospital in the area with burn trauma services, a designated Comprehensive Stroke Center, and National Cancer Institute-designated Comprehensive Cancer Center.

“We are excited to welcome Charlton as the new chair of our board during such a pivotal time for 340B,” said 340B Health President and CEO Maureen Testoni, a frequent RACmonitor contributor. “His deep understanding of health care finance and delivery, paired with a strong commitment to access and transparency, makes him an ideal leader for guiding our mission. With 340B facing more threats than ever, Charlton’s insight and leadership will help ensure safety-net hospitals can continue to provide essential care to patients who need it most.”

Testoni also thanked outgoing Board Chair Karen Bowling, Executive Vice President of government affairs for the West Virginia University (WVU) Health System and President and CEO of Princeton Community Hospital, one of the Health System’s 24 hospitals.

“Karen has been a pillar of strength and leadership throughout her years on the board,” Testoni said. “Her guidance and passion for the 340B mission have helped shape the program and protect underserved and rural communities. We are deeply grateful for her service and unwavering commitment to the safety net.”

In a May article published by RACmonitor, Testoni wrote of a recent report by U.S. Sen. Bill Cassidy, a Republican from Louisiana who chairs the influential Senate Health, Education, Labor, and Pensions Committee, which has jurisdiction over 340B.

“Over the past decade, he has raised various questions and concerns about hospital use of 340B,” Testoni wrote. “In November 2023, he began a 340B investigation, beginning with two 340B hospitals and later adding two health center networks, two national pharmacy chains, and two drug companies. Late last month, he released a report with findings from this multi-year investigation.”

“As we review this new report, one of our key concerns is the suggestion that 340B savings should be used to provide direct savings for patients,” the article read. “As noted by our research, 340B hospitals use a significant share of their 340B savings to subsidize direct patient care. But they also use their savings to invest in new services and clinics that are needed in their communities. 340B plays a critical role in allowing hospitals to invest resources to meet these needs.”

Rebecca Pifer of Healthcare Dive reported earlier this month that the U.S. Department of Health and Human Services (HHS) is considering moving oversight of the 340B program from the Health Resources and Services Administration (HRSA) to the Centers for Medicare & Medicaid Services (CMS), a change she said had providers “on edge,” with one source quoted as calling it potentially “truly devastating.”

Pifer’s article cited critics who say the program has far outgrown its original intent and also become subject to abuse, with drug discounts that often measure 20 to 50 percent being used more to plug budget gaps than to benefit patients. Yet many facilities, especially smaller ones serving poorer and rural areas, have been operating on shoestring budgets for years. 

A report published by MedCity News last month noted that the 340B program has grown from 8,100 participants in 2000 to 50,000 by 2020, with an estimated $66.3 billion in 340B drug purchases in 2023, compared to just $2.4 billion nearly 20 years earlier. “It’s been well-documented that drug companies have their issues with the 340B program,” the report read. “Several have sued the government – including Johnson & Johnson, Sanofi, Eli Lilly, Bristol Myers Squibb and Novartis – after the Health Resources and Services Administration rejected their proposed model for 340B that would provide hospitals retrospective rebates instead of upfront discounts on drugs. Judges have ruled against the drug companies in these efforts.”