Advocacy Alert

Urge Your Lawmakers to Support Essential Health System Designation

Statement on Appeals Court 340B Contract Pharmacy Ruling

January 30, 2023


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

WASHINGTON — The decision by the Court of Appeals for the Third Circuit allows drug companies to continue their unconscionable and harmful restrictions on 340B discounts for drugs dispensed through contract pharmacies and jeopardizes access to lifesaving medications for disadvantaged patients.

This decision does not sway us from our belief, as asserted by the U.S. Department of Health and Human Services (HHS), that these manufacturer restrictions violate the 340B Drug Pricing Program statute.

Essential hospitals depend on 340B savings to meet their safety net mission, and they extend their reach into communities by partnering with pharmacies to make 340B drugs more accessible. This is consistent with Congress’ intent that the 340B program should make drugs affordable for low-income patients and create savings for hospitals to use for safety net care.

We urge HHS to continue its efforts to end these harmful drug company policies immediately and restore savings lost to these restrictions.

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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.

Carl Graziano

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