The federal 340B program requires drug makers to sell their products to some hospitals at a discount. Hospitals and contract pharmacies can then resell them and pocket the difference. It’s a case of the government picking winners (hospitals) and losers (drug manufacturers) among private market participants. Hospitals argue that they need the money to help patients. That is, they use the extra revenue from the program to cut costs or provide free care for those in need. But Jarrett Skorup of the
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