Am. Hosp. Ass'n v. Hargan

RUDOLPH CONTRERAS, United States District Judge

I. INTRODUCTION

This case represents a dispute between certain public and not-for-profit hospitals and the Department of Health and *47Human Services ("HHS") over the rates at which Medicare will begin reimbursing them for pharmaceuticals that they acquire through a federal program known as the 340B Program. Although the 340B Program has enabled eligible hospitals to purchase pharmaceuticals from manufacturers at discounts, Medicare has historically reimbursed those hospitals at rates that were significantly higher than acquisition costs. Healthcare…