Members:

Government Shutdown Briefing

Statement on D.C. District Court Ruling on 340B Rebate Policies

May 16, 2025
Staff

FOR IMMEDIATE RELEASE

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

We thank the D.C. District Court for stopping drug manufacturers from unilaterally implementing profound 340B Drug Pricing Program changes that would force providers caring for underserved patients to float loans to manufacturers.

The Health Resources and Services Administration (HRSA) has rightfully seen through these proposals, which undermine hospitals’ ability to fulfill program intent. They are not attempts to improve compliance but rather money grabs to reduce access to discounts.

As explained in the amicus brief submitted by America’s Essential Hospitals and three other national associations, as well as hospital plaintiff submissions, there is certainly adequate justification for rejecting these proposals, and we are confident HRSA’s final decisions for four manufacturers and reconsideration of Sanofi will demonstrate that.

Essential hospitals will continue to work with HRSA and the Centers for Medicare & Medicaid Services to respond to legitimate compliance challenges without submitting to onerous individual manufacturer policies that, at their core, intend to restrict the program.

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About America’s Essential Hospitals 
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to 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 and access to health care. We support our more than 350 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 other services. Supported by Essential Hospitals Institute, the association’s research and education arm, essential hospitals innovate and adapt to lead all of health care toward better outcomes and value. 

Contact: 
Emily Schweich
Manager of Communications
media@essentialhospitals.org
202.585.0119