Court Of Appeals Upholds Hospital Price Transparency Rule

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We previously outlined the requirements of the Hospital Price Transparency Rule (the “Rule”), which goes into effect January 1, 2021. See The Price Transparency Rule Goes Into Effect January 1, 2021 – Is Your Hospital Ready?  Since releasing that blog post, the U.S. Court of Appeals for the District of Columbia Circuit issued its decision, ruling against the American Hospital Association and other hospital groups and upholding the District Court’s grant of summary judgement for the Department of Health and Human Services (“HHS”).  Among its allegations, the American Hospital Association had contended that the Rule exceeded HHS’ statutory authority, violated the First Amendment, and was arbitrary and capricious under the Administrative Procedure Act.

Because the Rule was upheld, it will go into effect as planned, and hospitals will not be relieved from compliance. Given that the decision was issued just days before the Rule’s effective date, it is unlikely to make a significant impact as most hospitals have already been preparing to comply with the Rule beginning January 1, 2021.

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