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Vizient Applauds DC Federal District Court Ruling in Favor of Hospital Plaintiffs on Cuts to 340B Program

Vizient, Inc. is extremely pleased by the recent ruling made by a federal district court judge that the Department of Health and Human Services (HHS) “exceeded its statutory authority” when the agency reduced Medicare payments to hospitals participating in the 340B Drug Pricing Program by nearly 30 percent. Although the Court granted the plaintiffs’ motion for a permanent injunction, it did not reach a decision on how to address the payment cuts that have already gone into effect. Judge Contreras decided to postpone a decision on a remedy, and ordered both parties to submit a supplemental brief on the appropriate way forward within 30 days.

Vizient has continually expressed disappointment in CMS’s policies to drastically reduce Medicare reimbursement for 340B drugs, which will have a severe and negative impact on safety net hospitals and the patients they serve. In our public comment letter to the Centers for Medicare and Medicaid Services (CMS) in 2017, Vizient also questioned the agency’s statutory authority to implement the payment reductions. Furthermore, reducing 340B hospital reimbursements will do nothing to address the rising cost of prescription drugs and will only threaten access to care.

Vizient is hopeful that CMS will reconsider these harmful policies, and looks forward to working with the agency on solutions to rising drug costs that will increase efficiencies, enhance quality of care, and protect patient access to life-saving medication.

Vizient is the nation’s largest health care performance improvement company serving a diverse membership that includes academic medical centers, pediatric facilities, community hospitals, integrated health care delivery networks and non-acute health care providers.

About Vizient, Inc.

Vizient, Inc., the largest member-driven health care performance improvement company in the country, provides innovative data-driven solutions, expertise and collaborative opportunities that lead to improved patient outcomes and lower costs. Vizient’s diverse membership base includes academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks and nonacute health care providers and represents more than $100 billion in annual purchasing volume. The Vizient brand identity represents the integration of VHA Inc., University HealthSystem Consortium and Novation, which combined in 2015, as well as MedAssets’ Spend and Clinical Resource Management (SCM) segment, including Sg2, which was acquired in 2016. In 2018, Vizient again received a World’s Most Ethical Company designation from the Ethisphere Institute. Vizient’s headquarters are in Irving, Texas, with locations in Chicago and other cities across the United States. Please visit as well as our newsroomblogTwitterLinkedIn and YouTube pages for more information about the company.

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Last Updated: 03-Jan-2019