CVS Moves to Dismiss Hospital Lawsuits Over 340B Savings Diversion
CVS Health filed motions to dismiss lawsuits brought by hospital systems in New York and Michigan alleging the company diverted 340B Drug Pricing Program savings. In a July 22 filing in the Eastern District of Michigan, CVS argued that University of Michigan Hospitals and Health Centers' lawsuit is a contract dispute rather than a 340B policy matter. The lawsuits center on allegations that CVS improperly retained savings intended for 340B-covered entities. The outcome could affect how pharmacy benefit managers handle 340B claims and reimbursements for safety-net providers, including Medicaid Disproportionate Share Hospitals.
Many Medicaid DSH hospitals and FQHCs rely on 340B savings to fund uncompensated care and Medicaid services; PBM practices affecting 340B reimbursement directly impact safety-net provider finances.
Pharmacy
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