Hospital groups say they plan to sue CMS over a hospital outpatient prospective payment system final rule released on November 1 that reduces the payment rate to hospitals for certain Medicare Part B drugs purchased through the 340B program. The new rule pays hospitals 22.5% less than sale prices, amounting to a $1.6 billion cut. The American Hospital Association, Association of American Medical Colleges, and America's Essential Hospitals said they will sue CMS to prevent the cuts. CMS said the savings will be reallocated equally to all hospitals paid under the hospital outpatient prospective payment system. Children's hospitals, certain cancer hospitals, and rural sole community hospitals will be excluded from these drug payment reductions. CMS will work with Congress for additional considerations on 340B for safety net hospitals, said CMS Administrator Seema Verma.