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Statement on Final Remedy for Unlawful Cuts to 340B Hospitals


Statement attributable to:
Beth Feldpush, DrPH
Senior Vice President of Policy and Advocacy
America’s Essential Hospitals

WASHINGTON — We thank the administration for timely action on a final rule to remedy its unlawful cuts to Medicare outpatient drug payments for hospitals in the 340B Drug Pricing Program.

With essential hospitals’ ongoing high labor costs and other financial challenges, final action on a plan to make repayments by early next year comes as welcome news — especially given the long delay in the proposed rule following court rulings on repayment.

However, we continue to disagree with the position of the Centers for Medicare & Medicaid Services (CMS) that it must recoup repayments in the name of budget neutrality. This will unnecessarily blunt the impact of the remedy by ensuring years of future underpayments. While we are pleased CMS chose not to begin recoupments until 2026, we continue to urge the agency to reconsider its position.

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About America’s Essential Hospitals
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to equitable, high-quality care for all, including those who face social and financial barriers to care. Since 1981, America’s Essential Hospitals has advanced policies and programs that promote health, health care access, and equity. We support our more than 300 members with advocacy, policy development, research, education, and leadership development. Communities depend on essential hospitals for care across the continuum, health care workforce training, research, public health and health equity, and other services. Essential hospitals innovate and adapt to lead all of health care toward better outcomes and value. Learn more at

Carl Graziano


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