Associations Urge Court to Stop 340B Payment Cut

Thirty-five state and regional hospital associations today urged the U.S. Court of Appeals for the District of Columbia Circuit to reverse a district court decision and grant a preliminary injunction to stop a nearly 30% Medicare payment reduction for many hospitals in the 340B Drug Pricing Program while the AHA and other hospital groups challenge the payment cut on appeal. “In evaluating the district court’s denial of a preliminary injunction, this Court must consider the extent to which an injunction is necessary to avert irreparable harm, the balance of the equities, and whether an injunction will serve the public interest,” the associations said in a friend-of-the-court brief. “It is difficult to imagine a case that more obviously satisfies those criteria. The new [Centers for Medicare & Medicaid Services] rule will hobble the ability of hospitals throughout the United States to provide health care to vulnerable populations and, in turn, will jeopardize the lives and health of countless needy patients. For these reasons, amici respectfully urge the Court to reverse the District Court’s decision.”