Genesis HealthCare Wins in Drug Discount Plan Guideline Case

The Health Resources and Services Administration exceeded its authority when it restricted conditions against covered entities regarding the use of drugs in a federal drug discount program, a district court ruled.

In a case between Genesis HealthCare Inc. and HRSA, the US District Court for the District of South Carolina Florence Division said the federal agency overstepped when it imposed certain conditions on covered entities in the federal 340B drug discount program.

The court’s order follows a legal battle between Genesis and HRSA over the interpretation of the term “patient” under the 340B statute and HRSA’s attempts to enforce its ...