Detroit-based Henry Ford Health sued CVS Health on July 16, alleging the pharmacy chain and its affiliates diverted more than $29 million in 340B drug savings owed to the health system through an unlawful reimbursement scheme.
The lawsuit alleges CVS blocked contract pharmacy arrangements that allowed Henry Ford Health to dispense 340B drugs through community pharmacies, reducing access for eligible patients and improperly retaining 340B savings.
Henry Ford is asking the court to order CVS to disgorge profits it retained from the alleged scheme and issue an injunction blocking the pricing practice going forward. The health system is also seeking to reinstate the pharmacy services agreements CVS terminated in April, which Henry Ford says came in retaliation for its attempt to audit the arrangement.
CVS denied the allegations in a statement shared with Becker’s.
“Henry Ford’s legal complaints are riddled with erroneous accusations, and we plan to vigorously defend against this lawsuit,” a CVS spokesperson said.
The lawsuit is the latest in a series of legal disputes over the 340B Drug Pricing Program. In May, New York City-based Mount Sinai Health System, Ann Arbor-based Michigan Medicine and Kansas City-based University of Kansas Health System filed similar lawsuits against CVS, alleging the company diverted roughly $250 million in 340B savings through the same reimbursement practices.
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