Court Formally Notified of 340B Appeal

WHA urges Congress to legislatively stop cuts in interim

January 12, 2018

The American Hospital Association, the Association of American Medical Colleges and America’s Essential Hospitals officially notified the court January 9 of their intent to appeal the district court’s December 29 decision to dismiss the group’s lawsuit to prevent Medicare payment cuts for certain 340B-covered entities. The associations are joined in the lawsuit by Eastern Maine Healthcare Systems in Brewer, ME, Henry Ford Health System in Detroit and Adventist Health System’s Park Ridge Health in Hendersonville, NC.

The court ruled the original lawsuit was premature since the cuts had yet to take effect. The court did not rule on the merits of the claim, leaving open the option of refiling the lawsuit once cuts go into effect. The cuts took effect January 1, 2018.

“The Wisconsin Hospital Association will continue to stand with our member hospitals in protecting the 340B program from the drastic cuts, and we fully support our national counterparts in their appeal,” said WHA President/CEO Eric Borgerding. “We urge Congress to place a moratorium on these cuts, as contained in HR 4293, to allow the appeals process to play itself out.”

This story originally appeared in the January 12, 2018 edition of WHA Newsletter