VOTE YES 

Summary:

Proposition 34 would require certain healthcare providers participating in the federal 340B drug discount program to spend at least 98% of their net revenue from the program on direct patient care. This proposition primarily targets entities that have significant non-patient-related expenditures—particularly those spending over $100 million in non-care activities over a 10-year period.

Why We Strongly Support Proposition 34:

Proposition 34 addresses the misuse of taxpayer-funded resources in healthcare by requiring certain healthcare providers to spend at least 98% of their net revenue from the 340B drug discount program on direct patient care. This initiative primarily impacts large healthcare organizations that receive substantial funds but have been accused of diverting them away from patient care and toward unrelated political lobbying and real estate investments. A prominent example is the AIDS Healthcare Foundation (AHF), which has been involved in controversial housing policies and political campaigns instead of focusing solely on its healthcare mission.

Why This Matters:

The 340B program was established to provide affordable prescription drugs to low-income and at-risk patients, not to fund political lobbying or real estate ventures. Under Proposition 34, organizations that abuse these funds would face penalties, including the potential loss of their tax-exempt status and professional healthcare licenses. By enforcing stricter spending requirements, the proposition ensures that healthcare resources are being used to improve patient care, rather than financing unrelated projects like rent control campaigns or housing developments.

Proposition 34 also seeks to hold large organizations accountable for health and safety violations in housing projects they manage. AHF, for example, has been criticized for poor maintenance and unsafe living conditions in properties it owns, despite receiving significant funding through healthcare channels. Requiring these organizations to focus their resources on patient care rather than unrelated business ventures aligns with Thrive LA PAC’s mission of promoting accountability and efficient use of public funds.

By voting yes on Proposition 34, we ensure that taxpayer-funded healthcare dollars are used for their intended purpose: providing affordable and high-quality care to those who need it most, while preventing the diversion of funds toward self-serving political agendas and unrelated business operations.