Bloomberg Law
Feb. 12, 2021, 1:36 AM

Hospitals Appeal to SCOTUS on Drug Pricing, Outpatient Payments

Brian Flood
Brian Flood
Legal Reporter

The American Hospital Association is asking the U.S. Supreme Court to reverse appeals court losses in two cases involving outpatient payment cuts.

The AHA and other hospital organizations are challenging cuts to a federal program aimed at health-care organizations that serve many uninsured and low-income patients. Those providers are eligible to buy outpatient drugs at discounted prices. Funding for the 340B Drug Pricing Program was cut 30% in 2018 and 2019 by the Department of Health and Human Services.

The question is whether the HHS has the authority “to set reimbursement rates based on acquisition cost and vary such rates ...