By the numbers (FY24):

Realized 340B Program Savings: $14,522,437

Charity Care & Community Benefit: $88,700,715

Medicare Disproportionate Share Adjustment Percentage – 56.9%

About UCSF Benioff Children's Hospital Oakland

In 1912, Nurse Bertha Wright and social worker Mabel Weed founded the "Baby Hospital," which later became Oakland Children's Hospital and is now UCSF Benioff Children's Hospital Oakland (BCH Oakland). Today, BCH Oakland is one of the largest nonprofit hospitals in Oakland and remains committed to providing the highest quality care to all children, regardless of their ability to pay.

BCH Oakland:

  • Is the only Bay Area ACS-certified Level 1 pediatric trauma center, and one of only six in California.
  • Is a nationally recognized teaching hospital with a highly sought-after pediatric residency program and unique pediatric subspecialty fellowship programs.
  • Has experts in 36 distinct pediatric specialties, including one of the nation's leading pediatric cancer centers.

As a private institution, BCH Oakland relies heavily on savings from participation in the 340B Drug Pricing Program, as well as other grants, to offset the financial losses incurred in caring for underserved patients and sustain additional services for vulnerable community members.

Benefits of the program

The cost of providing care often exceeds the reimbursement received, particularly for children covered by government-sponsored health insurance such as Medicaid and other means-tested programs. In 2022, 71 percent of UCSF Benioff Children's Hospital Oakland visits were for patients enrolled in government-sponsored insurance. In every case, the hospital absorbs the unreimbursed costs to ensure children receive the care they need.

Additional ways BCH Oakland gives back to the community include:

  • Providing free or discounted charity care to families who do not qualify for government-sponsored health insurance but meet eligibility requirements.
  • Operating the only pediatric hospital-based federally qualified health center (FQHC) in California, delivering primary care and addressing the social and environmental needs of approximately 11,000 underserved children annually.
  • Offering mental health therapy and assessments for individuals experiencing homelessness or transitional housing at the Encore Medical Clinic in Claremont Primary Care.
  • Partnering with Oakland Unified School District to provide telehealth and school-based health services.
  • Operating the Center for Child Protection, a specialized program offering medical and behavioral health services for children affected by abuse, violence, and exploitation.
  • Partnering with Whole Foods to provide a food bank that supplies groceries to patients and families experiencing food insecurity.

Impact of scaling back

Scaling back the 340B program would significantly impact BCH Oakland's ability to provide these critical services. The hospital also operates four federally qualified health centers (FQHCs): Claremont Primary Care Clinic, Castlemont and McClymonds school-based health centers, and the Teen Clinic. These sites deliver comprehensive care for low-income, uninsured, and Medi-Cal–enrolled children and families, including primary care, behavioral health services, and social support.

Continued restrictions on the 340B program threaten BCH Oakland's ability to sustain essential services that support Oakland's core health priorities in access to care, behavioral health, and economic security, impacting thousands of patients each year. By working together to protect and strengthen the 340B program, lawmakers and BCH Oakland can make sure vulnerable patients continue to receive the care, support, and opportunities for better health they deserve.