New York City, New York – Mount Sinai Health System has filed a federal lawsuit accusing CVS of improperly withholding more than $121 million from a federal prescription drug program designed to help hospitals care for low-income and uninsured patients.
The lawsuit, filed Monday in Manhattan federal court, centers on the federal 340B program, which allows qualifying hospitals to purchase prescription drugs at discounted prices and use the savings to fund care for vulnerable patients. Mount Sinai alleges CVS secretly diverted funds meant to support those services into its own corporate revenues.
According to the complaint, CVS subsidiaries received reimbursements from Medicaid for prescription drugs but allegedly failed to pass the savings back to Mount Sinai as required under the program. The hospital system claims CVS used its control over multiple parts of the pharmaceutical supply chain to conceal how reimbursements were calculated and distributed…