Hospitals Challenge 340B Program Changes Amid Vaccine Concerns

The American Hospital Association (AHA) and several hospital systems have initiated legal action against the Trump Administration regarding the implementation of a new pilot program for the 340B drug discount program. This lawsuit comes as the pharmaceutical industry has lobbied for a change in how clinics and hospitals serving low-income and rural patients pay for medications.

Under the proposed pilot, drug manufacturers would eliminate upfront discounts, instead charging full prices and subsequently offering rebates. Proponents argue that this shift is necessary due to issues arising from the drug price negotiation provisions in the Inflation Reduction Act. However, hospital systems contend that this change would impose significant financial burdens, requiring them to pay for expensive medications upfront while awaiting rebates.

A separate health concern has emerged regarding the timing of hepatitis B vaccinations for infants. A federal vaccine advisory group is expected to vote later this week on whether to delay the administration of the hepatitis B birth dose. According to a report from the University of Minnesota’s Vaccine Integrity Program, such a delay would not enhance the vaccine’s effectiveness or safety but could result in an increased number of young children becoming chronically infected with hepatitis B.

Research conducted by modelers at various U.S. universities indicates that postponing the vaccination by just two months could lead to over 1,400 infants becoming chronically infected within the first year of the change. This rise in infections could potentially lead to 304 cases of liver cancer and 482 hepatitis B-related deaths as these children grow older.

As these significant health and legal issues unfold, the implications for both hospitals and public health could be profound. The legal challenge reflects broader tensions between healthcare providers and the pharmaceutical industry, while the potential changes in vaccination timing raise serious concerns about the health outcomes for vulnerable populations.