A federal appeals court has halted a Trump administration initiative requiring hospitals to pay full prices upfront for certain medications, delaying rebates. The 1st U.S. Circuit Court of Appeals upheld an injunction against the Health Resources and Services Administration’s 340B Rebate Model Pilot Program. The American Hospital Association argued the program violated the Administrative Procedure Act, imposing financial burdens on hospitals serving low-income communities. The court’s decision maintains the status quo of upfront drug discounts, impacting hospitals’ financial strategies and drug pricing negotiations.
