Hospital Sues HHS Over Purchase Limitation in Drug Discount Plan

The US Department of Health and Human Services acted unlawfully when it determined that a Kentucky-based hospital violated a federal policy that limits how hospitals purchase medicines under a drug discount program, the health-care provider said in a complaint.

TJ Samson Community Hospital (TJCH) sued the HHS after a government audit determined the hospital violated a purchasing policy under the federal 340B Drug Pricing Program, according to a lawsuit filed Dec. 12 in the US District Court for the District of Columbia.

Under the 340B program, run by the HHS’s Health Resources and Services Administration, covered entities such as qualifying ...