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  • Press Release

    AAMC Statement on U.S. District Court Decision on Remedying Delayed Payments to 340B Hospitals

    Media Contacts

    John Buarotti, Sr. Media Relations Specialist

    AAMC (Association of American Medical Colleges) President and CEO David J. Skorton, MD, and AAMC Chief Health Care Officer Jonathan Jaffery, MD, MS, MMM, FACP, issued the following statement upon U.S. District Judge Rudolph Contreras’ ruling to return a 340B funding dispute back to the Department of Health and Human Services (HHS) to determine an appropriate remedy for delayed payments to hospitals participating in the 340B Drug Pricing Program:

    “The AAMC is disappointed by the district court ruling, which will likely delay retroactive payments to 340B hospitals for the period January 1, 2018 - September 27, 2022, following the U.S. Supreme Court decision last year that HHS cuts under the Outpatient Prospective Payment System, begun in 2018, were unlawful.

    The need for fair and prompt agency action is clear. We urge HHS to act without delay through the rulemaking process to remediate the long-standing underpayments while not disadvantaging other hospitals. The 340B program provides essential funding to help hospitals nationwide make more services and programs available for communities with limited access to health services.”


    The AAMC (Association of American Medical Colleges) is a nonprofit association dedicated to improving the health of people everywhere through medical education, health care, medical research, and community collaborations. Its members comprise all 157 accredited U.S. medical schools; 13 accredited Canadian medical schools; approximately 400 teaching hospitals and health systems, including Department of Veterans Affairs medical centers; and nearly 80 academic societies. Through these institutions and organizations, the AAMC leads and serves America’s medical schools and teaching hospitals and the millions of individuals across academic medicine, including more than 191,000 full-time faculty members, 95,000 medical students, 149,000 resident physicians, and 60,000 graduate students and postdoctoral researchers in the biomedical sciences. Following a 2022 merger, the Alliance of Academic Health Centers and the Alliance of Academic Health Centers International broadened the AAMC’s U.S. membership and expanded its reach to international academic health centers.