Hospital groups sue HHS seeking 340B price transparency now

The AHA, Association of American Medical Colleges, America’s Essential Hospitals, 340B Health and three hospital systems today asked a federal court to order the Department of Health and Human Services to make effective within 30 days a final rule requiring drug companies to disclose the ceiling price for 340B outpatient drugs. HHS has delayed five times the effective date for the rule, required by Congress in 2010. To ensure accuracy and compliance with the 340B drug savings program, the rule also describes how ceiling prices must be calculated and would allow the federal government to levy civil monetary penalties against drug companies that intentionally overcharge 340B providers. 

“As prescription drug prices continue to skyrocket, the 340B program is as crucial as ever in helping hospitals and health systems provide access to health care services for vulnerable patients and communities,” said AHA President and CEO Rick Pollack. “Our lawsuit will promote the transparency and accuracy that the government has found lacking and hold price gouging drug companies accountable.” 

The associations are joined in the suit by hospital plaintiffs Rutland Regional Medical Center in Rutland, Vt.; Genesis HealthCare System in Zanesville, Ohio; and Kearny County Hospital in Lakin, Kan.