AHA 'disappointed' as 340B case returns to HHS

The American Hospital Association said it's "disappointed" after a district court ruled to return a 340B funding case back to HHS to determine the appropriate remedy for the delayed payments, according to a Jan. 10 statement

340B, a decadeslong program that offers discounted drugs to hospitals treating a large proportion of underinsured and uninsured patients, has been shrouded in controversy for years because of multiple loopholes. 

"For more than five years, [HHS] has unlawfully withheld vital funding from 340B hospitals that helps them provide a range of important benefits to their patients and communities," AHA said. "HHS recently indicated that it expects to propose a remedy by April, and like the district court said in its opinion, the AHA 'expects that HHS will act promptly to remediate its underpayments.'"

The association said it will continue working on 340B hospitals receiving repayments with interest "while ensuring the remainder of the hospital field is not penalized."

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