Premier sued the federal government over a policy that restricts how 340B hospitals can purchase drugs.
The group purchasing and consulting organization filed a complaint Nov. 1 alleging the Health Resources and Services Administration does not have the authority to enforce a 2013 policy. The regulation requires 340B-eligible hospitals to purchase drugs through a group purchasing organization at the wholesale acquisition cost, rather than the 340B price or the discounted rates group purchasing organizations negotiate with drug manufacturers.
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HRSA denied Premier’s exemption request late last year.
The lawsuit is one of many involving the 340B drug pricing program, which is designed to save hospitals, physicians groups and outpatient facilities that treat large numbers of low-income and uninsured patients an estimated 25% to 50% on outpatient drugs.
Premier is asking the U.S. District Court for the District of Columbia to set aside the 2013 policy, which HRSA implemented to try to prevent providers from receiving group purchasing organization and 340B discounts on the same drug. HRSA declined to comment.
Premier alleges the policy inflates hospitals’ drug purchasing costs and requires providers to revamp inventory management software. A Premier spokesperson said in a statement the company's intent is not to disrupt the integrity of the 340B program.
"Premier’s lawsuit is focused on a very narrow provision that financially impacts both Premier and our members," the spokesperson said.
As a result of the regulation, providers must allegedly potentially pay hundreds of millions of dollars a year in increased purchasing costs and Premier loses millions of dollars of revenue per year, according to the complaint.
