Appeals court rejects hospitals' challenge to 340B cuts

Modern Healthcare: A federal appellate court on Tuesday rejected the American Hospital Association's attempt to block HHS' $1.6 billion in Medicare 340B reimbursement cuts.

In a unanimous decision, three judges from the U.S. Court of Appeals for the District of Columbia Circuit sided with HHS and ruled the hospitals' suit was filed prematurely since hospitals had not formally filed claims with the secretary because they were not yet experiencing cuts. The hospitals had argued that they satisfied that condition by submitting comments during the comment period.

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