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High court hears arguments in drug-pricing lawsuit
Modern Healthcare

The U.S. Supreme Court questioned in oral arguments whether local governments and their hospitals can sue pharmaceutical companies over drug-pricing agreements with the HHS.

The case, Astra USA Inc. v. Santa Clara County, was originally brought by Santa Clara County, Calif., which alleged that major drug companies overcharged them for prescription drugs for Medicaid patients.

Like many hospitals serving the poor, the Santa Clara Valley Medical Center in San Jose, Calif., a county facility, receives discounted drugs through pricing agreements between the HHS and pharmaceutical companies.