A group of plaintiffs, including 340B hospitals, on Oct. 9 filed a lawsuit with the District Court for the District of Maine seeking to block the Health Resources and Services Administration’s (HRSA’s) 340B Rebate Pilot, scheduled to launch Jan. 1, 2027. The same court previously blocked HRSA’s planned rebate model, which was scheduled to take effect Jan. 1, 2026. The plaintiffs also filed a motion for a temporary restraining order seeking to halt implementation of the pilot before Jan. 1.
In their complaint, the plaintiffs allege that HRSA violated the Administrative Procedure Act in several ways, including by failing to respond to significant public comments and consider relevant factors. They argue that the rebate pilot is arbitrary and capricious because HRSA significantly underestimated its costs, failed to articulate its purported benefits, did not consider less burdensome alternatives, and failed to account for the historical use of up-front discounts in justifying the policy.
The suit was brought by four hospitals—Eastern Maine Medical Center; Unity Medical Center, in North Dakota; Dallas County Medical Center, of Arkansas; and Nathan Littauer Hospital and Nursing Home, in New York—and was joined by the Maine Hospital Association and the American Hospital Association.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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