Eli Lilly has issued an ultimatum to over 1,000 hospitals: submit claims data within five days or forfeit price breaks under the 340B drug discount program. The warning, sent to providers across the US, gives institutions until a specified deadline to comply. Those that fail to provide the required information will lose access to discounted medications.
The 340B program allows hospitals serving low-income and uninsured patients to buy outpatient drugs at steep discounts. Eli Lilly's demand comes amid ongoing disputes between drugmakers and hospitals over how the program is administered. The company has argued that it needs claims data to ensure discounts are not being exploited.
Under the new requirement, hospitals must submit detailed claims records for each 340B-eligible patient. Eli Lilly says the data is necessary to verify that discounts go to intended beneficiaries. Critics contend the move is an overreach that could burden already strained hospital systems.
Hospitals that fail to meet the deadline risk losing discounts on drugs like insulin and cancer treatments. The American Hospital Association has criticized the policy, warning it could disrupt care for vulnerable patients. A legal battle may loom if some institutions refuse to comply.
Some analysts suggest the demand could set a precedent for other drugmakers to follow. The outcome may hinge on whether hospitals view the data request as reasonable or an infringement on their operations.