Recent Supreme Court Decisions: 340B Hospital Cuts and Medicare DSH Payments

July 21, 2022
Bass, Berry & Sims
Webinar

The second installment of Bass, Berry & Sims’ Regulatory Roadmap Webinar Series is designed to help industry leaders understand the most recent regulations and navigate challenges as you drive efficiency and innovation in the industry. Our goal is to provide the best information in its simplest form to help you decide the right course for your company. As always, we welcome your feedback and encourage sharing this invitation with anyone who may be interested in staying informed on the latest in healthcare law.

The U.S. Supreme Court recently issued two long-awaited decisions affecting payment to hospitals. In American Hospital Association v. Becerra, the Court found unlawful Medicare payment cuts to hospitals in the 340B drug pricing program, holding that the Medicare statute does not allow lower payment rates to 340B hospitals absent a survey of drug acquisition costs. At issue were $1.6 billion in payment cuts to hospitals for 340B drugs paid under Medicare Part B. In Becerra v. Empire Health Foundation, the Court ruled in favor of HHS’s interpretation of a Medicare statute governing the calculation of disproportionate share hospital (DSH) payments to hospitals based on their volume of care to Medicaid and low-income Medicare patients.

These decisions will have a direct impact on Medicare DSH hospitals, both with respect to their 340B program participation and ability to generate savings by using drugs for Medicare beneficiaries, as well as to the calculations of their Medicare DSH adjustment payments. The 340B decision will have indirect implications for the 340B program more broadly, including questions related to the program’s intent and how providers may access 340B benefit. The decision in Empire Health may lead to HHS moving forward with a final rule adopting a retroactive interpretation of how Medicare Part C days are to be counted in the DSH calculation. Also of interest are what the Court’s decisions did not do. The Court did not use the cases as an opportunity to overturn the Chevron deference doctrine, something that observers speculated was a possibility.

Bass, Berry & Sims healthcare attorneys Jeff Davis and Leslie Goldsmith will provide an overview of the Court’s decisions, highlight the potential financial and operational impact for hospitals, and discuss potential implications moving forward. Please join us Thursday, July 21 from 12:00 p.m. – 1:30 p.m. CT for this informative discussion. To register, please click here.

Who Should Attend

  • In-house legal counsel.
  • Finance department leaders.
  • Reimbursement and revenue cycle personnel.
  • 340B program stakeholders.

Accreditation

The webinar is pending approval for 1.5 hours of General Tennessee CLE credit. Certificate of completion and other necessary application forms will be provided for use in other jurisdictions.

Questions?

Submit questions for presenters during registration. For more information, please contact Sydney Marple.