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BREAKING: Major Developments in 340B Hospital Lawsuit and in 340B Contract Pharmacy Dispute

U.S. Appeals Court Won’t Rehear Lawsuit Over Medicare Payment Cuts for Hospitals’ 340B-Purchased Drugs

The full U.S. Court of Appeals for the District of Columbia Circuit late this afternoon denied a motion to reconsider a three-judge panel’s July 31 decision upholding the U.S. Centers for Medicare & Medicaid Services’ (CMS) nearly 30 percent cut since 2018 in 340B hospitals’ drug reimbursement under the hospital Outpatient Prospective Payment System (OPPS).

The only avenue left for the American Hospital Association (AHA), the Association of American Medical Colleges (AAMC), and America’s Essential Hospitals is to petition the U.S. Supreme Court to hear the case. The three groups and three health systems with hospitals enrolled in 340B sued to have the cuts declared illegal and reversed.


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