AHA Statement on District Court Decision in 340B Case

Melinda Hatton
General Counsel and Secretary
American Hospital Association

January 10, 2023

For more than five years, the Department of Health and Human Services has unlawfully withheld vital funding from 340B hospitals that helps them provide a range of important benefits to their patients and communities. We are disappointed that the district court elected to extend this delay by remanding this case back to the department to determine the appropriate remedy. HHS recently indicated that it expects to propose a remedy by April, and like the district court said in its opinion, the AHA “expects that HHS will act promptly to remediate its underpayments.” We look forward to continuing to work with the Administration to develop a plan to swiftly repay 340B hospitals, with interest, while ensuring the remainder of the hospital field is not penalized as they too continue to serve and care for their patients and communities.

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Contact:    Colin Milligan, cmilligan@aha.org
                  Ben Teicher, bteicher@aha.org