President and CEO
American Hospital Association
December 30, 2020
The 340B program plays a critical role in helping eligible hospitals provide a wide range of comprehensive services and low-cost drugs to vulnerable patients and communities, many of which have been the hardest hit by the COVID-19 pandemic. Today’s advisory opinion from HHS clarifying that 340B discounts apply to 340B drugs sold by community pharmacies is welcome news. We are pleased that HHS listened to our deep concerns about drug companies disregarding the law by limiting the distribution of certain 340B drugs to eligible hospitals. These concerns led us to file a lawsuit earlier this month to require HHS to stop these illegal actions from drug companies and protect vulnerable patients and communities.
We now expect HHS’s Health Resources and Services Administration (HRSA) to take swift and decisive action to halt these pernicious tactics from drug companies and ensure that 340B drugs remain available and accessible to vulnerable communities across the country. HRSA also needs to ensure that hospitals are made whole as a result of being denied appropriate discounts since these illegal practices began earlier this year.