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. 

Related News Articles

Headline
The Department of Health and Human Services April 18 finalized its rule to establish a 340B Administrative Dispute Resolution process as required under the…
Headline
Sen. John Thune, R-S.D., April 16 updated AHA members on progress to extend telehealth waivers, offering hope that a solution will arise in end-of-year…
Headline
AHA March 26 submitted comments on a discussion draft of the SUSTAIN 340B Act, legislation proposed in the Senate to clarify Congress’ intent in creating the…
Headline
AHA March 12 released a new report from Healthsperien on discounts to 340B hospitals through the 340B Drug Pricing Program relative to drug company revenues…
Headline
The U.S. Court of Appeals for the 8th Circuit March 12 upheld Arkansas’ 340B Drug Pricing Nondiscrimination Act against a constitutional challenge brought by…
Headline
AHA Feb. 29 filed a friend-of-the-court brief in support of a Louisiana law that prohibits drug companies from denying Louisiana hospitals the same 340B…