New York Attorney General Letitia James is suing CVS Health for allegedly violating antitrust laws and "diverting millions from underserved communities," according to a July 28 news release.
The suit alleges CVS Health forced New York hospitals and clinics to exclusively use its 340B program administrator sector, Wellpartner, which Ms. James said robbed hospitals of millions of dollars for years. The 340B federal program lets hospitals buy some drugs at a discount and redistribute the saved money to patient care.
"New York patients are the ultimate victims of CVS's scheme," the legal complaint says. "When CVS siphons off 340B program money from the very hospitals and health care providers for which the program is intended, it deprives safety net hospitals and health care providers of funds that could be used to improve quality and access to health care for the neediest New Yorkers — including New Yorkers without health insurance or an ability to pay for health care."
CVS refused to make contracts with hospitals that weren't using Wellpartner, according to an investigation from the attorney general's office.
"These allegations are without merit and we will defend ourselves vigorously," a CVS spokesperson told Becker's. "CVS Health's participation in the 340B program delivered approximately $2.2 billion in savings to 340B providers in 2021, and over $200 million in New York, more than doubling the savings offered to New York Covered Entities in 2017. Through our efforts, we've also expanded the number of available pharmacies that participate, creating greater access to New York patients being served including underserved populations."