A Mississippi court ruled in favor of hospitals in a case centered on the state’s contract pharmacy law. The Mississippi decision is the latest in a string of wins for hospitals, with courts across the country rejecting manufacturer challenges to state contract pharmacy statutes. ASHP and our partners, the American Hospital Association, 340B Health, the Mississippi Hospital Association, and the Rural Health Alliance, filed an amicus brief supporting the Mississippi law.
ASHP also joined amicus briefs in two separate cases also stemming from manufacturer challenges to state contract pharmacy laws in California and Washington. To date, ASHP has joined nearly 50 of these briefs to protect the 340B program for patients and providers.
The state laws at issue in these cases align with ASHP's 340B contract pharmacy model legislation. That legislation prohibits manufacturers from interfering in contract pharmacy arrangements. ASHP encourages all states to adopt similar legislation.
ASHP also continues to aggressively defend against the Centers for Medicare and Medicaid Services (CMS) proposal to cut payments for 340B medications by almost 40% in 2027. ASHP has prepared template comments for member use when responding to CMS’ proposed cuts. We encourage hospitals to submit their own comments to CMS by the Aug. 31 deadline. Questions or concerns about the proposed rule should be directed to Jillanne Schulte Wall, ASHP senior director of health and regulatory policy.
