Judge dismisses 340B lawsuit

The fate of significant reductions to the 340B program scheduled to take effect on Jan. 1, 2018, remains uncertain following a decision released today by U.S. District Court Judge Rudolph Contreras.  In his ruling,  Contreras granted the government’s motion to dismiss the lawsuit brought by the American Hospital Association (AHA) and others against the Center for Medicare and Medicaid Services (CMS) to delay the proposed cuts.

The Judge did not address the merits of the case; instead he held that he lacked jurisdiction (over this matter) because AHA and plantiffs had not exhausted their administrative remedies.  Additional details on the court’s ruling will be shared as they become unavailable.