Froedtert Hospital in Milwaukee has filed a lawsuit against CVS Health, accusing it of manipulating reimbursement for a federal drug discount program that helps hospitals serve economically disadvantaged patients.
According to a report in the Milwaukee Journal Sentinel, CVS is accused of using its dominant position in the pharma market to control the prescription drug supply chain and siphon about $18 million from the 340B program.
A CVS Health spokesman denied the allegations, saying the company would mount a vigorous defense.
The lawsuit was filed in U.S. District Court in Milwaukee.
