INDIANAPOLIS—The nation’s largest pharmaceutical company and biggest hospitals are headed for a showdown over federally mandated drug discounts on June 8.
That’s the deadline set by Eli Lilly for the hospitals to provide claims data, not including personal information, to demonstrate that they are not double-dipping on federal discounts and rebates. Lilly will end the discounts for hospitals that do not comply by the deadline.
The company announced the policy change on Jan. 15. Many large hospitals have so far refused to comply, saying the policy poses an administrative burden.
At stake is more than $40 billion a year in product discounts that have funded the consolidation of hospitals, physician practices, and other healthcare providers into massive healthcare conglomerates. …