Hospital groups sue HHS seeking 340B price transparency now

Sep 11, 2018 - 02:55 PM

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. 
 

Related News Articles

Headline
Lawmakers introduce bill codifying 340B providers’ use of contract pharmacies to dispense discounted drugs
Rep. Doris Matsui, D-Calif., and Sen. Peter Welch, D-Vt., today introduced the 340B Patients Act, AHA-supported legislation that would codify 340B providers'…
Headline
AHA files brief defending Colorado’s 340B contract pharmacy law
The AHA July 16 filed an amicus brief in the U.S. District Court for the District of Colorado in defense of the state’s 340B contract pharmacy law prohibiting…
Headline
Missouri district court rules in favor of state’s 340B law
The U.S. District Court for the Eastern District of Missouri July 11 granted a motion by the state to dismiss claims by AbbVie that the state’s 340B contract…
Headline
District court rules in favor of Tennessee’s 340B contract pharmacy law
The U.S. District Court for the Middle District of Tennessee June 30 denied a motion for a preliminary injunction by AbbVie in its lawsuit against the state’s…
Headline
AHA files amicus brief in second lawsuit challenging Tennessee’s 340B contract pharmacy law 
The AHA June 27 filed an amicus brief in the U.S. District Court for the Middle District of Tennessee that defends the state’s 340B contract pharmacy law…
Chairperson's File
Chair File: Leadership Dialogue — Legal Advocacy to Protect Hospitals With AHA General Counsel Chad Golder
Public
Advocacy is a core part of the work of the AHA, protecting and sustaining what hospitals and health systems need to truly care for our communities. We often…