Court Overturns Hospital Registration Mandate for Drug Discounts

A federal judge vacated an HHS policy requiring hospitals to register their satellite facilities with the agency to gain access to federally discounted drugs.

Judge Amit P. Mehta of the US District Court for the District of Columbia ruled Tuesday that the Health Resources and Services Administration couldn’t impose its policy requiring that hospitals register their satellite sites under the 340B drug discount program. Mehta found the requirement created additional restrictions on eligibility that weren’t found in the statute.

Under the 340B program, drug manufacturers are required to offer discounts on drugs to covered entities, including qualifying hospitals, clinics, and ...