The federal government had no business cutting section 340B payments to hospitals in the manner it did, the Supreme Court has ruled.

In an unanimous decision, the court found that the law creating the program gives the federal government two ways to set 340B payments for outpatient drugs for qualified providers and that the manner in which the Department of Health and Human Services cut those payments in 2018 followed neither.

Hospital groups estimate that the 340B payment cut amounted to about $1.6 billion annually.

Learn more about the high court ruling in the Healthcare Dive article “Hospitals win SCOTUS case against 340B rate cuts” and the Supreme Court decision.