Dive Brief:
Hospitals are urging the government to intercede after Eli Lilly followed through with a controversial plan to halt drug discounts to providers that didn’t comply with the drugmakers’ paperwork requirements.
Lilly cut off select hospitals’ 340B savings on Thursday, according to multiple hospital lobbies. The drugmaker argues it’s a necessary step to ensure hospitals aren’t double dipping on discounts in federal programs.
But hospitals slammed the move as illegal, and a thinly veiled attempt to boost Lilly’s profits that will undermine access to care for U.S. patients. The American Hospital Association and the lobby 340B Health called on federal regulators to overturn the policy.
Dive Insight:
