American Hospital Association V. Becerra

American Hospital Association v. Becerra is a landmark case in the field of healthcare law and hospital administration in the United States. The case was decided by the United States Supreme Court in 2021 and involved the American Hospital Association (AHA) and the Secretary of the Department of Health and Human Services, Xavier Becerra.

Background

The case originated from a dispute over the Medicare Outpatient Prospective Payment System (OPPS), a federal program that reimburses hospitals for outpatient services. In 2018, the Department of Health and Human Services (HHS) implemented a rule that significantly reduced the reimbursement rates for certain drugs purchased under the 340B Drug Pricing Program. The AHA, along with other hospital groups and healthcare providers, challenged this rule, arguing that it exceeded the HHS's statutory authority.

Court Proceedings

The case was first heard in the United States District Court for the District of Columbia, where the court ruled in favor of the AHA. The HHS appealed the decision to the United States Court of Appeals for the District of Columbia Circuit, which reversed the district court's decision. The AHA then appealed to the Supreme Court.

Supreme Court Decision

In a unanimous decision, the Supreme Court upheld the appellate court's ruling, affirming the HHS's authority to adjust the OPPS rates. The Court held that the HHS had reasonably interpreted the Medicare statute and that the rate reduction was within its administrative powers.

Impact

The decision in American Hospital Association v. Becerra has significant implications for hospitals and healthcare providers participating in the 340B program. It affirms the HHS's authority to adjust Medicare reimbursement rates, potentially leading to further changes in healthcare financing and administration.

The United States Supreme Court, where the case was decided.

See Also

• Healthcare law
• Hospital administration
• Medicare
• 340B Drug Pricing Program