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U.S. Supreme Court

Another 9th Circuit Decision Is Overturned; Hospitals Can’t Sue to Enforce Med Price Caps

Posted Mar 29, 2011 11:03 AM CDT
By Debra Cassens Weiss

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Hospitals that serve the poor can’t sue to enforce federal price caps on medications sold to medical facilities that serve the poor.

The U.S. Supreme Court ruled in an 8-0 decision (PDF) that suit may be brought only by the U.S. Department of Health and Human Services, the Associated Press and the Wall Street Journal report. Justice Ruth Bader Ginsburg wrote the opinion for the unanimous court.

Drug companies enter into the price cap agreements as a condition of participating in the Medicaid program. The high court decision overturns a ruling by the San Francisco-based 9th U.S. Circuit Court of Appeals.

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