Kansas Hospital Sues HHS Over J&J Audit in Discount Drug Program

A Kansas safety-net hospital sued federal health officials alleging that they violated their own guidelines when they allowed Johnson & Johnson to audit the hospital’s records under a federal drug discount program.

The University of Kansas Hospital Authority’s complaint filed Monday in the US District Court for the District of Columbia alleged that the Health Resources and Services Administration acted “outside the scope of its authority” when it approved J&J’s request to review whether the hospital violated a provision of the 340B drug discount program.

The 340B program requires drugmakers to discount drugs for covered entities, the qualifying hospitals, clinics, ...