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HHS 340B hospital pay cuts are legal, appeals court rules
Modern Healthcare: An appeals court panel on Friday ruled that an HHS policy that cut some Medicare outpatient drug payments by 28.5% at 340B hospitals is legal, overturning a lower court decision.
The U.S. Court of Appeals for the District of Columbia Circuit voted 2-1 to uphold the HHS payment policy, which the agency first proposed in 2017. Chief Judge Sri Srinivasan wrote in the court's opinion that HHS acted within its statutory authority to cut pay for 340B hospitals "so as to avoid reimbursing those hospitals at much higher levels than their actual costs to acquire the drugs."
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