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AAMC Refiles Lawsuit Challenging CMS’s Authority to Reduce Payment for Certain 340B Drugs

September 7, 2018—The AAMC, American Hospital Association, America’s Essential Hospitals, and three hospitals – Henry Ford Health System, Eastern Maine Healthcare Systems, and Park Ridge Health – Sept. 5 refiled the 340B lawsuit that had been rejected by an appeals court in July as the plaintiff hospitals had not yet filed claims or gone through the administrative appeals for reduced payment for separately payable drugs purchased under 340B in the fiscal year 2018 Outpatient Prospective Payment final rule [see Washington Highlights, July 20]. The new lawsuit argues that the reduction in 340B payments violate the Administrative Procedures Act.

The associations released a joint press release noting, “We look forward to receiving a prompt resolution on the merits of our case. For over 25 years the 340B program drug discounts have played a critical role in helping hospitals to expand access to care for vulnerable patients and communities at no cost to the federal government.”


Ivy Baer, J.D., M.P.H.
Senior Director and Regulatory Counsel
Telephone: 202-828-0499


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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.

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Jason Kleinman
Senior Legislative Analyst, Govt. Relations
Telephone: 202-903-0806