American Hospital Association et al. v. AbbVie Inc. et al.

Why this Matters:

The plaintiffs – a coalition of hospitals led by the American Hospital Association – 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. Seeking to represent their interests in this litigation, a coalition of pharmaceutical companies – led by AbbVie Inc. – asked to intervene in the litigation. The district court denied this request after concluding that the drug companies’ interests are already sufficiently represented by the government. This appeal addresses whether the district court erred in denying the request to intervene.

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.