Hospitals win 340B lawsuit at Supreme Court

Hospitals due $9B under 340B final rule

June 15, 2022


The Health and Human Services Department does not have the discretion to change 340B reimbursement rates without gathering data on what hospitals pay for outpatient drugs, the Supreme Court ruled Wednesday.

The unanimous opinion, authored by Justice Brett Kavanaugh, reverses a 2020 decision by the U.S. Court of Appeals for the District of Columbia Circuit.

“Absent a survey of hospitals’ acquisition costs, HHS may not vary the reimbursement rates only for 340B hospitals; HHS’s 2018 and 2019 reimbursement rates for 340B hospitals were therefore unlawful,” Kavanaugh wrote. “Under the text and structure of the statute, this case is therefore straightforward.” The high court also rejected HHS’s contention that the regulations aren’t subject to judicial review.

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