The Federation of American Hospitals, led by its President and CEO Chip Kahn, is making its strongest effort to date to preserve Medicare drug reimbursement cuts for 340B hospitals.

For-Profit Hospitals Back Medicare’s 340B Hospital Cuts in Legal Brief, Study, and Blog

The association for U.S. for-profit hospitals yesterday made its strongest pitch yet to preserve the nearly 30 percent cut in what Medicare pays many public and private nonprofit hospitals for physician-administered, 340B-purchased drugs.

The Federation of American Hospitals (FAH) submitted a brief to the U.S. Supreme Court and released a study backing the U.S. Centers for Medicare & Medicaid Services’ (CMS) decision under President Trump to reduce Medicare Part B reimbursement for 340B-purchased drugs under the hospital Outpatient Prospective Payment System (OPPS). The cuts began in 2018, and it is estimated they total about $1.6 billion annually. They apply to 340B disproportionate share hospitals, urban sole community hospitals, and rural referral centers.

The association for U.S. for-profit hospitals yesterday made its strongest pitch yet to preserve the nearly 30 percent cut in what Medicare pays many public and private nonprofit hospitals for physician-administered, 340B-purchased drugs.

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