Hospitals Prevail In Challenge To 340B Rebate Model
The U.S. Court of Appeals for the First Circuit denied to stay a district court ruling that enjoined the U.S. Department of Health and Human Services’ 340B Rebate Model Pilot Program.
The American Hospital Association and several 340B covered entities successfully challenged the program in the U.S. District Court for the District of Maine, where the court ruled that the agency’s decision to launch the rebate program was arbitrary and capricious for failing to consider and reasonably explain its impact on hospitals.
On appeal, the First Circuit ruled that HHS failed to demonstrate sufficient likelihood of success on the ultimate merits of the case, a necessary element to granting a stay.
HHS also has appealed entry of the injunction on the merits, which will be adjudicated by the First Circuit following briefing and argument by the parties.
The Missouri Hospital Association is a nonprofit association in Jefferson City that represents 136 Missouri hospitals. In addition to representation and advocacy on behalf of its membership, the association offers continuing education programs on current health care topics and seeks to educate the public about health care issues.