Michael French and Richard Davis Share Perspective on Potential Restrictive Revisions to 340B Program in BioCentury Article
Quarles & Brady attorneys Michael French and Richard Davis, both members of the firm's Health & Life Sciences Practice Group, provided comment for a BioCentury article about limits to the 340B drug discount program being proposed by some stakeholders. Many hospitals are not in favor of the suggested limitations and the fate of the program could be decided by the outcome of pending litigation.
Richard Davis and Michael French, attorneys at Quarles &Brady LLP, told BioCentury that the policy principles would limit the participation of hospitals in 340B and restrict how covered entities use the money they make from it. Davis and French contend those changes would be counter to the original intent of the law and far transcend simply reforming how contract pharmacies are used.
“The consensus view on this has been that the covered entity is entitled to keep that delta between what they receive in reimbursement and what they pay for the drug,” said Davis, adding that hospitals are restricted in terms of what they can do with the money as non-profits subject to U.S. tax law, and that most put it to good use.