American Hospital Association et al. v. Kennedy et al.

Docket No.
2:25-cv-00600
District Court
Maine

Goal

  • Block enforcement of an agency action
  • Declaration that agency action is unlawful

Issues

Litigation Content

Why this Matters:

The plaintiffs allege that a new 340B pilot rebate payment model violates the Administrative Procedure Act and imposes burdensome administrative and financial costs on participating hospitals. Instead of allowing hospitals to purchase a drug at a rebated price, the pilot model would require hospitals to pay drug manufacturers the full price of certain drugs up front and then seek a rebate once the drugs have been administered to eligible patients.

Potential Impact:

Hospitals argue that paying the full price of certain drugs up front will limit resources otherwise available for patient care and hamper hospitals’ ability to provide comprehensive care.

Litigation Information

Current Status

Briefing is ongoing

Important Date

Conference