Mount Sinai Alleges CVS Pocketed $121 Million in Federal Funds Meant for Low-Income Patients
A lawsuit filed by Mount Sinai alleges that CVS has been diverting over $121 million since 2020 from a federal program designed to provide prescription drug cost savings for hospitals serving low-income and uninsured patients. This program, known as 340B, is intended to enable hospitals to offset the costs of medications for those who cannot afford them. Mount Sinai contends that CVS, by controlling the drug supply chain and obscuring its pricing practices, is illegally pocketing the difference between the drug’s cost and the reimbursed amount, thereby impacting critical funding for vulnerable patient care. The hospital system seeks to compel CVS to reinstate their contract, cease these practices, and pay threefold the amount allegedly withheld.
John Q. Hosedrinker