When a private oncology practice in Memphis formed a partnership with a nearby hospital in late 2011, the organizations proclaimed that the deal would "transform cancer care" in the region. What they did not emphasize was that the deal would also create a windfall for them worth millions of dollars a year, courtesy of an obscure federally mandated drug discount program. The program, known as 340B, requires most drug companies to provide hefty discounts—typically 20 to 50 percent—to hospitals and clinics that treat low-income and uninsured patients.
