This week we have a breaking news bonus episode of 340B Insight. 340B Health President and CEO Maureen Testoni joins us to discuss the filing of a lawsuit against the Department of Health & Human Services with four other national hospital organizations, a national pharmacist’s organization, and three individual 340B hospitals, seeking to halt drug companies’ refusals to provide 340B discounts to hospitals on covered drugs dispensed at community-based contract pharmacies. 

Manufacturers’ Actions are Unlawful A group of major drug companies have taken unilateral actions to refuse to provide 340B pricing, and the federal government has failed to act to enforce the law. As a result, 340B Health, four other national hospital organizations, a pharmacist organization, and three individual 340B hospitals have filed a lawsuit in the U.S. District Court for the Northern District of California. 

What the Lawsuit Asks the Court to Do 340B Health and the other joint plaintiffs will demonstrate to the court that HHS has the authority and the responsibility to enforce the 340B statute to protect safety-net hospitals and patients. The lawsuit asks the court to order HHS to require drug manufacturers to provide 340B pricing on covered drugs dispensed to community-based contract pharmacies and refund to 340B hospitals the money that they lost because of the manufacturers’ actions. The complaint also asked for an order requiring HHS to refer the matter to the Office of the Inspector General for potential civil penalties. 

Could a New Administration Affect the Case? Maureen says 340B Health will be educating the incoming Biden administration about the matter of drug manufacturers not complying with the 340B statute. The issue could be resolved quickly if the next HHS Secretary enforces the 340B statute, which would result in drug manufacturers having to provide 340B discounts again when drugs are dispensed at community-based contract pharmacies. 

Tune in Next Week for More Analysis Maureen will join us again next week for our final podcast episode of 2020 to provide additional analysis of what comes next in responding to drug companies continued attacks on 340B as well as other issues that have affected 340B hospitals in 2020. 

Check out all of our episodes on the 340B Insight podcast website. You also can stay updated on all 340B Health news and information by visiting our homepage. If you have any questions you would like us to cover in this podcast, email us at [email protected].

Resources 

1. Hospitals and Pharmacists File Lawsuit Over Drug Companies’ Refusals Of 340B Discounts