340B Delay: Order denying the Government's motion to stay

Plaintiffs, a collection of hospitals, hospital associations, and healthcare providers, have brought this action against the Department of Health and Human Services (“HHS”) and Secretary of HHS Alex M. Azar II, in his official capacity, arguing that HHS’s decision to continue to delay implementation of a final rule (the “Rule”) it issued on January 5, 2017, is arbitrary and capricious and constitutes “unreasonably delayed” agency action under the Administrative Procedure Act (“APA”), 5 U.S.C. § 500 et seq. Compl. [ECF No. 1] 21–22, 57–62. Concurrent with the filing of their complaint, plaintiffs moved for summary judgment. The government now moves to stay the case pending the outcome of an anticipated rule that would advance the effective date of the Rule, or, in the alternative, to stay briefing of summary judgment until after the Court has decided the government’s yet-to-be-filed motion to dismiss. For the reasons described below, the government’s motion will be denied.

Download the order below.