The Institute for Health Policy Accountability (IHPA), an independent authority on key drivers of decision-making in the health care space, today released a new report detailing how major non-profit hospital systems in New York State are generating massive revenues and enriching executives, while overbilling patients and failing to meaningfully serve low-income and vulnerable patients, despite receiving federal funds from the 340B Drug Pricing Program. 

This report is the latest in IHPA’s ongoing series examining how non-profit hospitals nationwide are leaving low-income patients behind while profiting from the 340B program, a federal initiative intended to help hospitals provide care and affordable medications to underserved populations. The New York report reviews some of the state’s largest non-profit hospital systems that participate in the 340B program, including NewYork-Presbyterian, NYU Langone Health, Montefiore Health System, Albany Medical Center, Northwell Health, Memorial Sloan Kettering Cancer Center, BronxCare Health System, and Mohawk Valley Health System. 

Key findings from the IHPA New York report include:

Failing to serve low-income communities

• A statewide analysis found that 42 percent of New York’s non-profit hospitals received more in tax benefits than they invested back into their communities, amounting to $518 million annually.
• NewYork-Presbyterian, NYU Langone, and Albany Medical Center each posted some of the largest “fair share deficits” in the state, meaning they took tens of millions more in taxpayer benefits than they invested in the community.

Lavish executive compensation and corporate excess

• NewYork-Presbyterian paid outgoing CEO Steven J. Corwin $23.3 million in 2024, with 25 executives earning more than $1 million annually.
• NYU Langone Health paid Dean and CEO Robert Grossman $15.3 million in 2024, while employing at least 13 executives with seven-figure salaries. 
• Memorial Sloan Kettering paid President and CEO Selwyn Vickers $6.6 million, and Albany Medical Center paid its CEO $5.8 million, despite both receiving substantial taxpayer benefits.

Massive revenues and rapid financial growth

• NewYork-Presbyterian reported more than $10.6 billion in revenue in 2024.
• NYU Langone generated $9.45 billion in revenue, growing more than 6 percent year over year.
• Montefiore Medical Center reported nearly $6 billion in revenue, with a growth rate approaching 17 percent.
• Albany Medical Center, Northwell Health, Memorial Sloan Kettering, BronxCare, and Mohawk Valley Health System all reported hundreds of millions to billions of dollars in annual revenue.

Fraud, abuse, and putting profits over patients

• New York-Presbyterian paid millions of dollars to settle allegations involving medically unnecessary procedures and illegal kickbacks.
• Northwell Health paid more than $25 million across multiple settlements related to billing for services not performed and medically unnecessary procedures.
• Montefiore Health System paid $4.75 million after failing to protect the health records of more than 12,500 patients, whose data was stolen and sold.
• Memorial Sloan Kettering faced extensive scrutiny after investigations revealed executives received undisclosed financial benefits tied to outside medical and pharmaceutical companies.

Read the full report here.

BACKGROUND ON 340B: 

• The 340B Drug Pricing Program was enacted by Congress in 1992 and meant to lower prescription drug costs for non-profit hospitals that serve low-income and vulnerable communities. Instead, research shows the program has been exploited by major non-profit health systems that generate billions in annual revenue.
• This report follows a Senate HELP Committee hearing in October 2025, where Republican Senators voiced their frustrations with the program.
• According to a CBO analysis late last year, hospitals across the U.S. have exploited the 340B Drug Pricing Program, resulting in significant waste, fraud, and abuse. The report found that the program “encourages behaviors that increase federal spending and raise prices for American taxpayers.”

The Institute for Health Policy Accountability is an independent authority on key drivers of decision making in the health care space. IHPA provides fact-based research and analysis across the public policy landscape, adding a central and currently missing voice to the conversation.

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