Advocacy Alert

Urge Your Lawmakers to Support Essential Health System Designation

Statement on Appeals Court 340B Contract Pharmacy Ruling

May 22, 2024


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

WASHINGTON — The decision by the U.S. Court of Appeals for the District of Columbia allows drug companies to continue their egregious restrictions on 340B discounts for drugs dispensed by contract pharmacies and puts care for disadvantaged patients at risk.

This ruling notwithstanding, we remain firm in our position these restrictions violate the 340B Drug Pricing Program statute, an opinion shared by the U.S. Department of Health and Human Services (HHS).

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 for the 340B program. 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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