Challenge to Reverse Cuts for 340B Hospitals Continues

The AHA, Association of American Medical Colleges and America’s Essential Hospitals today said they expect to “refile promptly in district court” their lawsuit challenging a nearly 30% Medicare payment reduction for many hospitals in the 340B drug savings program. Responding to a federal appeals court ruling today dismissing the case for lack of presentment, the groups said, “We are deeply disappointed that the courts have once again failed to rule on the merits of our case. As today’s decision stated, ‘The question presented is not whether they may obtain judicial review of their challenges….but when and how they may do so through the special-review scheme for Medicare claims.’” The hospital groups and three hospital organizations in January appealed a lower court’s decision that dismissed their lawsuit on the same basis as the appeals court. “For more than 25 years, the 340B program has played a critical role in helping hospitals expand access to care for vulnerable patients and communities, with drug discounts that cost the government nothing,” the hospital groups said. “We will continue our fight to reverse these unwarranted cuts and protect access for patients.”