Corporate welfare for hospitals has been raising costs
Hospitals are not as unpopular as other health care sectors, such as drug manufacturers and insurance companies. But like other businesses, they are prone to rent-seeking and fiercely defensive of special breaks. Case in point: The 340B drug discount program. The federal program was created in 1992 to help hospitals and clinics in poor communities. In recent weeks, it has become the target of new lawsuits over complaints that wealthy health systems are abusing the benefits and driving up costs for everyone else. The program requires pharmaceutical companies to sell drugs at a ...