In November of last year, we wrote about a preliminary injunction being sought by hospital advocacy groups attempting to stop implementation of the Trump administration’s cuts to the 340B Drug Pricing Program (“340B Program”). Last week, the Motion for a Preliminary Injunction was denied and the case was dismissed in a final, appealable order. As a result, the final rule effecting such cuts – “Medicare Program: Hospital Outpatient Prospective Payment and Ambulatory Surgical Center Payment Systems and Quality Reporting Programs” (“Final Rule”), promulgated by the Centers for Medicare & Medicaid Services (CMS) on November 13, 2017 – went into effect on January 1, 2018.

As we previously described, the Final Rule cut reimbursement rates for participating hospitals purchasing medicine through the 340B Program from 6% above the average sales price to 22.5% below the average sales price. In a statement following the decision, the hospital advocacy groups indicated that they will continue to pursue legal actions to fight cuts to the 340B Program.^[1]

[1] Hospital Groups to Continue to Pursue Lawsuit to Reverse Cuts for 340B Hospitals, Association of American Medical Colleges, December 29, 2017, https://news.aamc.org/press-releases/article/hospital-groups-appeal-340b-ruling/.