Bass, Berry & Sims attorneys Jeff Davis, Michael Hess and Shannon Wiley examined the January 2023 decision by the U.S. Court of Appeals for the Third Circuit ruling that drug manufacturer restrictions on use of contract pharmacies under the 340B drug pricing program are allowed and the federal government’s policy prohibiting such restrictions is unlawful. While there are currently two other cases awaiting ruling on this issue, the Third Circuit ruling calls into question the contract pharmacy model.

The authors caution that “340B provider organizations should be on the lookout for changes in manufacturer policies as a result of the Third Circuit decision. As noted, two manufacturers have announced restrictions since the ruling and more may join them.”

Additionally, the attorneys note that “The Third Circuit also left unanswered key questions related to what types of manufacturer restrictions on contract pharmacy use may be unlawful … Providers should consider whether they will face challenges accessing 340B pricing moving forward.”

The full article, “Court Ruling Leaves 340B Providers Waiting for Clarity About the Use of Contract Pharmacies,” was published by MedCity News on March 26 and is available online. For additional insight on this topic, read the alert written by Bass, Berry & Sims healthcare attorneys, “Third Circuit Ruling Allows Restrictions on 340B Contract Pharmacies.”