Hospital groups refile lawsuit to reverse 340B payment cuts

The AHA, Association of American Medical Colleges, America’s Essential Hospitals, and three hospital plaintiffs today refiled a lawsuit in federal district court seeking expedited relief from Medicare payment cuts for many hospitals in the 340B Drug Pricing Program. An appeals court in July delayed a ruling on the merits of the case because no claims had been filed when the lawsuit was brought to prevent the cuts. After the cuts took effect, the hospital plaintiffs filed claims that have progressed through the appeals process. The lawsuit argues that the 340B provisions of the Centers for Medicare & Medicaid Services’ calendar year 2018 outpatient prospective payment system final rule, which reduced Medicare payments to certain hospitals for outpatient drugs purchased under the 340B program by $1.6 billion a year, violate the Administrative Procedure Act and exceed the agency’s statutory authority. “We look forward to receiving a prompt resolution on the merits of our case,” the hospital associations said today. “For over 25 years 340B program drug discounts have played a critical role in helping hospitals expand access to care for vulnerable patients and communities at no cost to the federal government.”