A federal judge has ordered 340B certifications for 11 clinics to be set aside after finding they did not meet statutory requirements for participation in the drug discount program.
The U.S. District Court for the District of Columbia on Aug. 14 granted partial summary judgment to drugmakers including Amgen and Genentech. The court found that the clinics received qualifying funding through Sagebrush Health Services rather than directly from a state or local government, as required under the 340B statute.
Eight of the clinics operated in Nevada and had active certifications as recently as 2025. Three operated in Connecticut and their certifications had already been terminated. The clinics received more than $30 million in 340B discounts between 2022 and 2025.
In 2023, Nevada awarded $600 in federal grant funding for STD treatment and prevention to Sagebrush. The court found that Sagebrush was the grant recipient and the independent clinics were included as locations under its grant.
The court ordered the clinics’ current and previous certifications set aside and barred the government from recertifying them based on funds received through Sagebrush or another private entity rather than directly from a state or local government.
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