New York hospitals participating in the federal 340B Drug Pricing Program may be using drug savings for financial investments rather than patient care, according to research by Lisa Grabert, a health policy professor at Marquette University. The program allows eligible nonprofit and safety-net hospitals to buy outpatient drugs at significant discounts and keep the difference between the discounted price and what insurers reimburse. Grabert found that New York 340B hospitals invested 42 percent more revenue into financial assets than non-340B hospitals. The same hospitals reported no significant increase in charity care compared to peers and relied heavily on contract labor. The findings come as New York lawmakers debate a bill that would expand protections for 340B providers.