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Statement on 340B Orphan Drug Lawsuit

FOR IMMEDIATE RELEASE

Statement attributable to:
Bruce Siegel, MD, MPH
President and CEO
America’s Essential Hospitals

WASHINGTON—”Pharmaceutical manufacturers have again put profits ahead of patients, providers, and taxpayers by launching a new legal attack against lower drug costs for our most vulnerable people.”

“This renewed effort to gut the orphan drug rule issued by the Health Resources and Services Administration (HRSA) seeks only to boost drug makers’ profits at the expense of disadvantaged patients. We stand firm in our belief that HRSA’s regulatory interpretation is consistent with federal law—and a reasonable one that supports the purposes of the program.”

“Hospitals’ 340B savings allow them to provide primary care, cancer and other specialized care, and other essential services to those in greatest need. To erode this discount, as the pharmaceutical industry seeks, would significantly undermine the 340B program’s benefits, possibly force hospitals to withdraw from the program, and result in reduced services and higher costs for a significant number of patients.”

“Congress established 340B as a way for hospitals to stretch scarce resources, serve more patients, and provide more comprehensive services—and for all stakeholders to meet their obligation to serve the public good. Hospitals are doing their part.”

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About America’s Essential Hospitals

America’s Essential Hospitals, formerly the National Association of Public Hospitals and Health Systems, is the leading association and champion for hospitals and health systems dedicated to high-quality care for all, including the most vulnerable. Since 1981, America’s Essential Hospitals has initiated, advanced, and preserved programs and policies that help these hospitals ensure access to care. It supports members with advocacy, policy development, research, and education.

Our nearly 250 members are vital to their communities, providing primary through trauma care, disaster response, health professionals training, research, public health programs, and other services. They innovate and adapt to lead the broader health care community toward more effective and efficient care. Visit EssentialHospitals.org to learn more.

Contact
Carl Graziano
202.585.0102
cgraziano@essentialhospitals.org

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About the Author

Graziano is senior director of communications for America's Essential Hospitals.

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