A unanimous U.S. Supreme Court March 29 ruled that federally funded medical clinics and hospitals may not bring breach of contract actions against drug companies that participate in the 340B prescription drug rebate program (Astra USA Inc. v. Santa Clara County, U.S., 09-1273, 3/29/11).
The high court said that allowing public hospitals and other entities covered by the program to sue as third-party beneficiaries of pharmaceutical pricing agreements (PPAs) between drugmakers and the Department of Health and Human Services would be “incompatible with the statutory regime.”
The decision closes the door on efforts by covered entities to recover ...
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