In separate status reports to a federal judge last night, health centers and the government, and HIV/AIDS clinics and the government, agreed to keep stays in place in lawsuits involving 340B contract pharmacy. | Shutterstock

Health Centers, HIV/AIDS Clinics, and Feds Agree on Keeping Stays in Place in 340B Lawsuits

The National Association of Community Health Centers (NACHC) and the U.S. Justice Department (DOJ) last night proposed that a federal district judge should maintain the stay in NACHC’s suit against the government stemming from drug manufacturers’ denials of 340B pricing when covered entities use contract pharmacies to dispense medications.

NACHC and DOJ made the proposal in a scheduled May 19 joint status report on the lawsuit. They proposed filing their next report on June 18.

Meanwhile, Ryan White Clinics for 340B Access (RWC-340B) and DOJ also last night filed a scheduled joint status report in RWC-340B’s similar 340B contract pharmacy-related suit against the government. Like NACHC and DOJ in the health centers’ case, RWC-340B and DOJ agreed in their report that they should file their next status report on June 18. An attorney for RWC-340B said this morning the parties to the suit also want the stay in their case to remain in effect.

The two status reports were among the first legal developments in the seven federal lawsuits over drug manufacturers’ denials of 340B pricing since the U.S. Health Resources and Services Administration (HRSA) on Monday told the manufacturers that their pricing actions were illegal. HRSA said the manufacturers must immediately begin offering its covered outpatient drugs at the 340B ceiling price to covered entities through their contract pharmacy arrangements, and must issue credits or refunds for overcharges that resulted from their policies. Continued failure to comply could result in civil monetary penalties, HRSA warned.