District Court Judge Rudolph Contreras today heard arguments from both sides in the AHA's lawsuit to prevent the Department of Health and Human Services from reducing Medicare payments under the 340B drug savings program by nearly 30% effective Jan. 1. AHA is joined in the lawsuit by the Association of American Medical Colleges and America's Essential Hospitals, as well as Eastern Maine Healthcare Systems in Brewer, ME, Henry Ford Health System in Detroit and Adventist Health System's Park Ridge Health in Hendersonville, NC. The judge said he would rule on the preliminary injunction, which would prevent the cuts from taking effect, before Jan. 1. Judge Contreras actively questioned both sides during an extended oral argument that focused on a number of technical legal issues, as well as congressional intent behind the 340B program. He asked both sides pointed questions about whether the HHS secretary had sufficient authority to make the nearly 30% cuts to Medicare payments to offset savings from the 340B program for the affected hospitals. He also inquired about the harm that would befall hospitals if the rule were permitted to go into effect as scheduled and suggested it might be preferable to prevent the rule from taking effect rather than undoing it at a later date. 

Related News Articles

Headline
The AHA, 340B Health, Maryland Hospital Association and Mid-Atlantic Association of Community Health Centers July 9 filed an amicus brief in a federal district…
Headline
In a letter submitted July 2 to the Centers for Medicare & Medicaid Services on guidance for the Medicare Drug Price Negotiation Program, the AHA expressed…
Headline
A Mississippi judge July 1 denied Novartis Pharmaceuticals’ and PhRMA’s request for a preliminary injunction against enforcement of state law protecting 340B…
Headline
The AHA, 340B Health, the Maryland Hospital Association and the Mid-Atlantic Association of Community Health Centers June 26 filed an amicus brief in a federal…
Headline
The AHA, along with 340B Health, the Mississippi Hospital Association and the Rural Hospital Alliance filed an amicus brief June 18  in the U.S. District…
Headline
The AHA June 7 submitted comments on a discussion draft of the Drug Shortage Prevention and Mitigation Act, bipartisan legislation proposing to provide…