District Court Judge Rudolph Contreras today heard arguments from both sides in the AHA's lawsuit to prevent the Department of Health and Human Services from reducing Medicare payments under the 340B drug savings program by nearly 30% effective Jan. 1. AHA is joined in the lawsuit by the Association of American Medical Colleges and America's Essential Hospitals, as well as Eastern Maine Healthcare Systems in Brewer, ME, Henry Ford Health System in Detroit and Adventist Health System's Park Ridge Health in Hendersonville, NC. The judge said he would rule on the preliminary injunction, which would prevent the cuts from taking effect, before Jan. 1. Judge Contreras actively questioned both sides during an extended oral argument that focused on a number of technical legal issues, as well as congressional intent behind the 340B program. He asked both sides pointed questions about whether the HHS secretary had sufficient authority to make the nearly 30% cuts to Medicare payments to offset savings from the 340B program for the affected hospitals. He also inquired about the harm that would befall hospitals if the rule were permitted to go into effect as scheduled and suggested it might be preferable to prevent the rule from taking effect rather than undoing it at a later date. 

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The AHA again is asking the Health Resources and Services Administration to take action after Eli Lilly warned hospitals that they could lose access to…
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The Washington Post yesterday published a letter to the editor from AHA President and CEO Rick Pollack responding to an April 18 editorial criticizing the 340B…
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The Health Resources and Services Administration should abandon its consideration of a 340B rebate model pilot program because “a rebate mechanism of any kind…
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The AHA and others April 17 filed an amicus brief requesting the U.S. Court of Appeals for the 4th Circuit grant en banc review of a panel decision that…
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The U.S. Court of Appeals for the 5th Circuit April 9 affirmed rulings by a Mississippi district court that rejected requests by Novartis and PhRMA to enjoin…
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The U.S. District Court for the District of Columbia March 31 vacated a Health Resources and Services Administration policy instituted in 2013 that restricted…