AHA, others file reply briefs in petitions asking U.S. Supreme Court to hear cases on 340B, hospital outpatient cuts

The AHA, joined by member hospitals and health systems and other national organizations representing hospitals, today filed reply briefs in their petitions asking the U.S. Supreme Court to reverse appeals court decisions in two important cases for patients and providers. The two cases being appealed to the U.S. Supreme Court are:

• A lawsuit challenging the U.S. Department of Health and Human Services’ nearly 30% cut to 2018 and 2019 Medicare outpatient prospective payment system drug payments for certain hospitals participating in the 340B Drug Pricing Program. A district court had sided with the AHA and found that the payment reductions were unlawful. However, last July, two members of the three-judge panel of the U.S. Court of Appeals agreed to overturn that ruling, despite a spirited dissent questioning the majority’s deference to the government’s position.
   
• A lawsuit challenging HHS’ payment reductions in the 2019 outpatient payment rule for certain hospital outpatient off-campus provider-based departments. A lower court twice found that HHS exceeded its statutory authority when it reduced these payments. But, in July, a three-judge appeals panel reversed this decision.

View today’s 340B and site-neutral reply briefs for more details. The Supreme Court is expected to decide sometime next month if it will take one or both of these cases.