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2/18/2021

ASHP Files Motion to Enforce 340B Drug Pricing

Today, ASHP and five national hospital organizations, in a continued effort to protect the 340B Drug Pricing Program, filed a motion requesting that a federal district court allow us to intervene in litigation between Eli Lilly and the Department of Health and Human Services (HHS).

ASHP, 340B Health, the American Hospital Association, America’s Essential Hospitals, the Association of American Medical Colleges, and the Children’s Hospital Association took this important step as a means to defend the HHS advisory opinion stating that manufacturers must provide 340B discounts to qualified health systems, including when a contracting pharmacy is used to dispense drugs.

“The 340B program has been critical in ensuring that our most vulnerable populations have access to the care they need,” said Tom Kraus, ASHP vice president of government relations. “HHS has rightly stated that manufacturers cannot make up their own rules regarding pricing provided to 340B-covered entities. It is essential that the program be implemented as Congress intended, and we believe that intervening in this case will help ensure that happens.”

Earlier this week, a federal court dismissed a separate but related lawsuit, recently brought by ASHP and our partner associations and hospitals, against the government to enforce 340B program requirements.

“While we are disappointed in the court’s decision in this case, we are pleased that subsequent to the filing of our lawsuit, HHS issued the advisory opinion which unquestionably affirmed our position that manufacturers have a legal obligation to provide discounts to 340B covered entities, including when contract pharmacies are used,” said Kraus. “As the court noted, HHS is also taking steps to implement a dispute resolution process through which hospitals may seek compensation from manufacturers that fail to provide adequate discounts under the program. We continue to believe that HHS needs to take enforcement action against manufacturers that fail to provide discounts to covered entities, as required by law. ASHP is committed to working with our co-plaintiffs to ensure that manufacturers meet their obligations under the 340B program.”

ASHP will continue to keep our members informed on the ongoing 340B litigation and our aggressive advocacy on this critical program for our members and the patients they serve.


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