UHS - U.S. Supreme Court rules in favor of hospitals on Medicare reimbursement

The U.S. Supreme Court ruled on Wednesday that the Department of Health and Human Services (HHS) improperly cut more than $1B in Medicare reimbursements annually to a certain group of hospitals. The justices unanimously sided with the American Hospital Association in the lawsuit over 340B Drug Pricing Program, which generally relates to hospitals serving low-income or rural communities. The Supreme Court Justice Brett Kavanaugh wrote that the federal government reduced the reimbursement rates for 340B hospitals even without conducting a survey of hospitals’ purchasing costs for outpatient prescription drugs in 2018 and 2019. As a result, the hospital group had a substantial financial impact, about $1.6B annually, Kavanaugh added. U.S. hospital operators: HCA Healthcare (NYSE:HCA), Community Health Systems (CYH), Surgery Partners (SGRY), Tenet Healthcare (THC), Universal Health Services (UHS), Select Medical Holdings (SEM) Read why HCA Healthcare (HCA) triggered a selloff among its rivals after its 1Q 2022 results.

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U.S. Supreme Court rules in favor of hospitals on Medicare reimbursement