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Drug companies will be fined 
for overcharging 340B hospitals
By Virgil Dickson  January 4, 2017
Modern Healthcare

The Obama administration has finalized a rule that imposes fines on drug companies that overcharge hospitals and clinics for medication purchased under the government's 340B drug discount program.

Drug companies must reimburse providers that overpaid for products and would be subject to fines of up to $5,000 per instance if they overcharged "knowingly and intentionally."

The penalties were outlined in a final rule released Wednesday by the Health Resources and Services Administration, a department of the HHS. The rule also establishes a system for calculating “ceiling prices” for covered outpatient drugs — something some industry stakeholders say the agency lack the authority to do.
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