A U.S. appeals court ruled against the Department of Health and Human Services (HHS) in its efforts to overturn a lower court’s pause on the implementation of the Health Resources and Services Administration’s 340B rebate pilot program.
ASHP joined an amicus brief with our partners at 340B Health, America’s Essential Hospitals, Association of American Medical Colleges and the Children’s Hospital Association urging the appellate court to reject HHS’s argument that the 340B pilot program should not be subject to a preliminary injunction.
The decision keeps the district court order in place, preventing manufacturer proposals to implement a rebate model beginning Jan. 1, 2026, from taking effect pending further litigation.
“ASHP applauds the court’s action to prevent manufacturers from undermining the 340B Drug Pricing Program that safety net hospitals rely on to care for their patients,” said Tom Kraus, ASHP vice president of government relations. ASHP commends the American Hospital Association for its leadership on litigation opposing the rebate model.
