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.

2 Major Filings

Litigation Information

Current Status

Briefing is ongoing