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February 17, 2021

District Judge in California Dismisses Hospital 340B Lawsuit

A district court judge in California today dismissed a lawsuit filed by several hospital associations seeking to ensure enforcement of 340B discounts when drugs are dispensed through contract pharmacies. The judge concluded that the lawsuit was premature, as no final agency action had yet been taken, and dismissed for lack of subject matter jurisdiction. In light of HRSA’s continued consideration of the issue, the change in administrations, and the COVID-19 pandemic, the judge found that HRSA had not yet abdicated its statutory responsibilities, though left the door open to hospitals to refile the suit if warranted.