White Paper

4 Pages
  • 4 Pages

Federal Appeals Court Upholds Payment Reduction to 340B Hospitals


Gain an understanding on recent court decisions and what the implications are for hospitals.

The D.C. Circuit Court of Appeals issued a decision at the end of July 2020 that reversed a previous lower court decision and upheld Medicare payment cuts to hospitals taking part in the 340B drug pricing program that had been in place since 2018. Then in early August 2020 the Centers for Medicare & Medicaid Services released a proposed OPPS payment rule for the upcoming year which included a reduction in payment rates to 340B hospitals and an alternative policy to continue paying 340B hospitals at the current rates. This white paper provides background on 340B litigation and discusses HHS's authority to implement 340B payment cuts and the implications for hospitals and next steps.



Jeffrey I. Davis

Baker, Donelson, Bearman, Caldwell & Berkowitz, PC

Jeffrey I. Davis is Of Counsel/Senior Advisor in the Washington, D.C. office of Baker Donelson. Jeff Davis helps clients navigate the complex policy and legal issues surrounding the 340B drug pricing program, including Medicare and Medicaid-related compliance requirements, and provides clients with strategic policy advice and counsel on health care matters. Prior to joining the Firm, Mr. Davis served as vice president and legislative and policy counsel for 340B Health, a nonprofit organization of more than 1,300 hospitals and health systems participating in the 340B drug pricing program. During his more than seven years with 340B Health, he provided hospitals with technical assistance on 340B, Medicare, and Medicaid program compliance issues, oversaw research and policy efforts, and helped lead the government relations team in their work to educate members of Congress and their staff on the importance of the 340B program to hospitals and their patients. Mr. Davis is also a frequent speaker at major industry forums, making regular presentations at annual 340B Coalition conferences, state hospital association meetings, drug manufacturer conferences, and other professional association events.

Mr. Davis previously served as the health care legislative assistant for U.S. Representative Shelley Berkley (D-NV), where he advised Rep. Berkley on health care issues and legislation before Congress and the House Ways and Means Committee and partnered with health care providers to promote increased Medicare funding for hospitals, physicians, nursing homes, acute care and long term care facilities, and other providers.

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