A group of hospitals and hospital associations has sued the Department of Health and Human Services and its Health Resources and Services Administration over their scheduled introduction of the 340B Rebate Model Program, which beginning on January 1 will replace discounts to qualified institutional providers under the 340B prescription drug discount program with post-purchase rebates for 21 prescription medicines sold by 10 drug companies.

The suit charges that the program will jeopardize the financial health of eligible 340B hospitals and impose onerous administrative costs on them.  A federal court rejected HRSA’s first attempt to implement the program earlier this year.

Earlier this year the Alliance of Community Safety-Net Hospitals wrote to HRSA urging the agency to withdraw an earlier version of the proposed program; find that letter here.  ASH continues to oppose implementation of the 340B Rebate Model Program.

Learn more from the lawsuit filed to prevent implementation of the 340B Rebate Model Program.