Hospitals Sue HHS Over New Drug Discount Rebate Pilot Program

Hospital groups that represent thousands of health-care providers across the US sued the Department of Health and Human Services over a new government pilot program that stands to shake up how they can access steeply discounted medicines from drugmakers.

The complaint and temporary restraining order filed Monday in the US District Court for the District of Maine by the American Hospital Association, the Maine Hospital Association, and four safety-net health systems seeks to block the implementation of the 340B Rebate Model Pilot Program.

The pilot, administered by the department’s US Health Resources & Services Administration, is set to significantly ...