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Hospitals allege CVS Health subsidiaries pocketed 340B drug-pricing savings

New lawsuit accuses CVS-linked pharmacy benefit and specialty operations of diverting discount-program savings owed to safety-net hospitals.

Hospitals allege CVS Health subsidiaries pocketed 340B drug-pricing savings

A group of U.S. hospitals filed a federal lawsuit this week alleging that subsidiaries of CVS Health diverted savings from the 340B drug-pricing program that were supposed to flow to safety-net providers, according to reporting from Fierce Healthcare.

The 340B program requires drugmakers to sell outpatient drugs to qualifying hospitals — disproportionate-share hospitals, critical-access facilities, and certain clinics — at deeply discounted prices. The hospitals then keep the spread between the 340B price and the reimbursement they collect, with the savings legally intended to fund care for low-income patients.

The plaintiffs allege that several CVS-affiliated pharmacy benefit management and specialty pharmacy units structured contract terms so that the 340B discount accrued to CVS rather than to the hospitals, in violation of program rules.

CVS Health did not immediately respond to the publication’s request for comment.

The 340B program has been the center of a multi-year industry fight. Drugmakers have repeatedly cut off shipments to contract pharmacies, while PBMs and specialty pharmacies have come under federal and congressional scrutiny over their handling of program savings.

Sources: Fierce Healthcare, May 21, 2026


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