The U.S. Supreme Court has ruled that public hospitals and community health centers cannot sue drug manufacturers over alleged overcharging for prescription medications.
In the case, Astra USA v. Santa Clara County, the Justices ruled 8-0 in favor of the petitioner. Justice Elena Kagan did not take part, according to a Bloomberg Businessweek report.
The case deals with the rights of entities covered under 340B of the Public Health Services Act to sue drug manufacturers for alleged overcharging for medications. 340B imposes ceilings on prices drug manufacturers may charge for medications sold to specified healthcare facilities. Those facilities, called "340B" or "covered" entities, include public hospitals and community health centers, many of them providers of safety-net services to the poor.
In the Court's opinion, it determined only the department of Health and Human Services, which oversees the program through its Health Resources and Services Administration unit — not individual hospitals or health centers — has authority to sue for alleged drug overcharges.
Read the full Supreme Court ruling in Astra USA v. Santa Clara County on Leagle.com.
In the case, Astra USA v. Santa Clara County, the Justices ruled 8-0 in favor of the petitioner. Justice Elena Kagan did not take part, according to a Bloomberg Businessweek report.
The case deals with the rights of entities covered under 340B of the Public Health Services Act to sue drug manufacturers for alleged overcharging for medications. 340B imposes ceilings on prices drug manufacturers may charge for medications sold to specified healthcare facilities. Those facilities, called "340B" or "covered" entities, include public hospitals and community health centers, many of them providers of safety-net services to the poor.
In the Court's opinion, it determined only the department of Health and Human Services, which oversees the program through its Health Resources and Services Administration unit — not individual hospitals or health centers — has authority to sue for alleged drug overcharges.
Read the full Supreme Court ruling in Astra USA v. Santa Clara County on Leagle.com.