Eli Lilly followed through on its ultimatum late last week, stopping 340B discounts for hospitals that failed to comply with its new paperwork requirements.
The 340B program requires drugmakers to offer discounted prices to hospitals serving low-income and rural populations. Lilly's new demands include additional claims data, a step hospitals argue exceeds the program's legal framework.
Hospitals are now urging the Health Resources and Services Administration (HRSA) to intervene, claiming the drugmaker's action undermines the program's intent. The dispute highlights ongoing tensions between manufacturers and providers over program oversight.
Lilly's move affects hospitals that did not meet a November 30 deadline. The company has not specified how many facilities are impacted, nor the total value of discounts withheld.
No immediate response has been reported from HRSA. The standoff could set a precedent for how drugmakers police the 340B program, which has grown rapidly in recent years.