AHA, others file suit to block unlawful 340B changes threatening patient care
The AHA, the Maine Hospital Association and four safety-net health systems from across the country Dec. 1 filed a lawsuit in the U.S. District Court for the District of Maine to challenge the 340B Rebate Model Pilot Program. The AHA and its co-plaintiffs are seeking a temporary restraining order to stop the rebate program from going into effect Jan. 1, 2026.
If implemented, the program would impose overwhelming financial and administrative burdens on 340B hospitals, many of which already operate on razor thin margins while playing a vital role in their communities, often serving as the only source of care. The lawsuit alleges that the Department of Health and Human Services’ decision to move forward with the rebate program through a rushed, opaque process violates the most basic principles of administrative law, including by ignoring the concerns of over 1,000 340B hospitals and other stakeholders, many of which highlighted the significant costs and community impact of administering the rebate model.
“When the government announced its new rebate program just a few months ago, it recognized that it would fundamentally shift how the 340B program has operated for more than three decades,” said Rick Pollack, President and CEO of the AHA. “When making such a major change, with such far reaching consequences for patients and hospitals, it is important that the government follow the basic administrative rules of the road. Unfortunately, it did not do so here. And giving hospitals only a few months to comply with these burdensome new requirements or risk losing millions of dollars in discounts they are entitled to under the law will harm patients and communities across the country. We are asking the court to act quickly to protect access to vital care services.”
The AHA and Maine Hospital Association are joined in this suit by St. Mary’s Regional Medical Center in Maine, the Unity Medical Center in North Dakota, the Dallas County Medical Center in Arkansas and the Nathan Littauer Hospital and Nursing Home in New York — all community-based health care providers that participate in the 340B program.