Hospitals Sue HHS For Slow-Walking 340B Penalties

By Jeff Overley (September 11, 2018, 9:55 PM EDT) -- Hospital groups on Tuesday sued the U.S. Department of Health and Human Services in D.C. federal court for not penalizing drugmakers for excess charges in the 340B drug discount program, arguing that a 30-month delay in enforcement is unlawful.

The American Hospital Association and fellow hospital groups accused HHS of improperly delaying to July 2019 a civil monetary penalties regulation that the agency finalized in January 2017. HHS has said that extra time is needed for smooth implementation, but the hospitals say that assertion is untenable, given that Congress authorized the penalties in 2010 and HHS issued a proposed rule in...

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