CHA News Article

Federal District Court Holds Hearing on Hospital 340B Program Lawsuit
Lawsuit by AHA and others seeks to block 340B payment cuts

Today, U.S. District Court Judge Rudolph Contreras said he will rule on the American Hospital Association’s request for a preliminary injunction that seeks to block implementation of the payment cuts to hospitals participating in the 340B Drug Pricing Program, which are scheduled to take effect Jan.1, 2018. According to trade press reports, the judge also indicated during the 90-minute hearing that his decision is likely to face an appeal.

“My goal is decide soon and let the circuit court decide it,” Contreras told attorneys.

The American Hospital Association and other hospitals are seeking to block a provision enacted as part of the calendar year 2018 outpatient prospective payment system rule that will cut payments to 340B hospitals by nearly 30 percent for certain. CHA filed an amicus brief in support of the case earlier this month. CHA will keep members informed through CHA News once a final decision is made.