U.S. District Judge Matthew Maddox issued a preliminary order on Sept. 5 blocking program 340B, according to court documents obtained by Becker’s. The judge’s written order did not explain his reasoning but referred to the statements he made from the bench during a hearing held Sept. 4.
Drug companies Pharmaceutical Research and Manufacturers of America, Novartis, AbbVie and AstraZeneca had sought to prevent the law from taking effect, arguing that the 340B conflicts with federal regulations.
The case is one of numerous similar challenges to state laws dealing with companies’ federal obligations under the 340B program.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.