At a Glance

Amici curiae are 37 non-profit state and regional hospital associations. They represent thousands of hospitals and health systems across the United States. Amici and their members are committed to improving the health of the communities they serve through the delivery of high-quality, efficient, and accessible health care. The 340B Program is essential to achieving this goal.

Congress established the 340B Program because it was “concerned that many federally funded hospital facilities serving low-income patients were incurring high prices for drugs.” The reimbursement rate reduction imposed by the Centers for Medicare and Medicaid Services’ (“CMS”) final rule undercuts Congress’ intent by drastically raising drug prices for those hospitals. As a result of CMS’s final rule, many of the hospitals and health systems that amici represent will be severely harmed. Consequently, scores of low-income, uninsured, underinsured, and rural patients will be unable to receive the same services. Amici have a strong interest in ensuring that their members do not face a diminution of this vital funding.

Introduction:

the federal health care statutes and the Administrative Procedure Act. The parties are well-equipped to address those issues. Amici can best assist the Court in another way: by providing their perspective from the front lines of 340B care about the consequences of upholding CMS’s final rule. Amici respectfully submit this brief to provide the Court with information about the history, importance, and impact of the 340B Program and the hospitals it supports. Many of amici’s member-hospitals and member health systems treat America’s poorest patients. Often, the health care services that these members provide are uncompensated, undercompensated, or deeply discounted. Hundreds of member-hospitals therefore rely on the 340B Program, through which millions of dollars are saved each year on the purchase of outpatient drugs. And just as Congress intended, the savings from the 340B Program enable these members to “stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”4 Now, however, the final rule at issue in this case will stretch amici’s member-hospitals beyond the breaking point. If CMS’s final rule is allowed to stand, 340B providers will be forced to eliminate or dramatically curtail some crucial programs that treat a wide range of medical conditions—from cancer to mental health disorders to diabetes to opioid addiction.

View the entire Amicus Brief below.