Healthcare organizations filed suit against HHS over delayed 340B final rule

Healthcare services are improving and advancing due to value-based care solutions and remote patient monitoring software. But, the prices of medicines need to be curbed to improve healthcare services. Thus, four national healthcare organizations filed suit against The Department of Health and Human Services (HHS) over the long delay of its final rule that is supposed to implement price ceilings in the 340B drug discount program.

download (54).jpg

If the rule is finalized, it would set price ceilings and impose civil penalties on pharmaceutical companies that knowingly overcharge hospitals in the program. HHS delayed the rule for the fifth time in June, after it initially issued it in January 2017.

The American Hospital Association, America’s Essential Hospitals, 340B Health and the Association of American Medical Colleges are signed on to the lawsuit, which mentions that nearly two-year delay is unlawful under the Administration Procedure Act.

Bruce Siegel, M.D., CEO of America's Essential Hospitals mentioned that hospitals adhere to rigorous requirements for accountability in the 340B program but, government has been unsuccessful in holding manufacturers to the same standard.

He also said that the program should help hospitals and other covered entities give vulnerable patients greater access to affordable medicines and healthcare services.