Hospital Organizations File Suit on HHS Enforcement of Drug Manufacturers for 340B Drug Program

December 16, 2020

Five organizations, including the American Hospital Association, filed a lawsuit to require the Department of Health and Human Services (HHS) to enforce provisions of the 340B drug discount program. The provisions require drug manufacturers to provide drugs at a discounted price to qualifying entities, such as DSH hospitals, critical access hospitals, federally qualified health centers and others that provide services to underserved populations. Several manufacturers are refusing to provide drugs at discounted rates to qualified entities. WSHA, AHA, and other 340B entities are urging HHS to take action. While HHS has issued some warning letters to drug manufacturers, thus far there has been no change in drug manufacturers policies and HHS has yet to take enforcement action. WSHA will continue to support efforts to require drug manufacturers to comply with the 340B program requirements. (Andrew Busz,


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