U.S. agency slaps down a J&J plan to switch payments for 340B hospitals

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The U.S. Health Resources and Services Administration criticized Johnson & Johnson for planning to change payment methods for hospitals participating in a drug discount program. The company intended to issue rebates for two medications instead of offering discounted prices, which was deemed inconsistent with federal law. The move is scheduled for October 15th and affects hospitals buying the Xarelto blood thinner and Stelara plaque psoriasis treatment through the 340B program. Established 30 years ago to assist low-income and rural patients, the program requires drug companies to offer discounts to participating hospitals and clinics. The government agency stated that J&J’s plan must be approved before implementation.

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