Hospitals denied full court review in lawsuit over 340B cuts

The rejected petition for a complete court evaluation means the three-judge panels choice is upheld..

In 2018, under its proposed Medicare Outpatient Prospective Payment System, HHS cut the compensation rate for 340B drugs by almost 30 percent.

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The U.S. Court of Appeals for the District of Columbia Circuit denied the hospitals motion for en banc, or full court, evaluation Oct. 16..

Hospitals taking legal action against HHS over a policy that will cut Medicare outpatient drug payments by nearly 30 percent at 340B hospitals stopped working to persuade a complete appeals court to rehear the case, according to court files released by Bloomberg Law..

A three-judge panel for the appeals court ruled in July that cuts to the payment rate for drugs bought under the 340B program are legal. The judges said that the lower HHS drug compensation rate “rests on an affordable interpretation of the Medicare statute.”.

Alia Paavola –
Monday, October 19th, 2020

The American Hospital Association, Association of American Medical Colleges and Americas Essential Hospitals in December 2018 sued to stop the cuts, arguing that HHS exceeded its federal authority to change the payment rates..