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Hospitals just won a massive 340B victory that changes everything.
On March 3, 2026, a federal judge struck down HRSA’s child site registration requirement for the 340B Drug Pricing Program.
This is huge. Here’s why it matters:
🏥 The Problem:
For over 30 years, hospitals had to register off-campus facilities in HRSA’s system BEFORE those sites could access 340B drug discounts. New clinics? Urgent expansions? Emergency sites? All had to wait for bureaucratic approval while patients needed affordable medications.
Judge Mehta ruled HRSA exceeded its authority, creating barriers Congress never intended.
💊 What Changes Now:
Hospitals can immediately provide 340B-priced drugs at ANY qualifying off-campus location, as long as patients meet program requirements. No more registration delays. No more denying patients access to affordable medications while waiting for paperwork.
This restores the pandemic-era flexibility that helped hospitals rapidly expand care access.
🔄 But Here’s the Twist:
While hospitals celebrate this win, the entire 340B program faces its biggest shake-up since 1992. The administration proposed transferring oversight from HRSA to CMS, fundamentally changing how the program operates.
Plus, HRSA is pushing a new rebate model that would replace upfront discounts with backend rebates, potentially disrupting cash flow for safety net providers.
Think about this: We just removed one barrier to accessing affordable drugs, but we’re potentially creating entirely new ones through administrative restructuring.
The 340B program serves 12,000+ covered entities and saves billions in drug costs annually. These changes will ripple through every safety net provider in America.
Are we fixing the right problems, or just moving the goalposts?
♻️ Repost if 340B program changes affect your organization’s drug pricing strategy
👉 Follow me, Jonathan Govette, for daily, real-time updates on healthcare technology and business news. LinkedIn Profile: https://www.linkedin.com/in/jonathangovette/
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Author:
CEO/Co-Founder @ Oatmeal Health | AI Lung Cancer Screening | Almost Became a Doctor | Engineer | Follow to Share What I’ve Learned Along the Way
I help patients get the care they need earlier, preventing late-stage cancer.
That’s been the throughline across three companies and almost 20 years in healthcare. At ReferralMD, we fixed broken referral networks so patients didn’t fall through the cracks. At Oatmeal Health, it’s lung cancer: building the diagnostic and screening infrastructure so the 85% of cases caught too late get caught early instead.
Today as CEO of Oatmeal Health, I lead a team embedding AI into radiology workflows to turn routine lung CT scans into reimbursable cancer risk assessments. We partner with FQHCs to reach underserved communities, and with health systems and payers to make early detection economically sustainable. Think HeartFlow or Cleerly, but for lungs.
Between companies, I advised at Techstars and Plug and Play, mentoring founders building in digital health. That experience shaped how I think about what separates companies that ship from companies that stall: distribution, reimbursement, and clinical trust, not just technology.
I’m a CancerX alumnus, a 3x healthcare founder, and someone who believes the biggest problems in cancer aren’t scientific. They’re operational.
We’re hiring mission-driven builders at Oatmeal Health. If you want to work on something that matters, reach out.
When I’m not working, I’m traveling, mentoring, and keeping up with one very energetic husky. 🐾
Substack – The Oatmeal Bite:
Millions of patients get less care because of who they are, where they live, or how they look. I’m fighting to change that. CEO @OatmealHealth, a startup built for the underserved. The Oatmeal Bite: intel for clinicians, investors, and advocates.
Jonathan Govette
CEO of Oatmeal Health
Substack:
https://oatmealhealthjonathangovette.substack.com/
