Three health systems sue CVS/Caremark for ~$250M in alleged 340B savings diversion (RICO)
Mount Sinai, Michigan Medicine, and the University of Kansas Health System filed federal racketeering (RICO) suits on May 21, 2026 alleging CVS Health/Caremark secretly diverted roughly $250M in 340B program savings between 2020 and 2025 by paying covered entities artificially reduced reimbursement while concealing higher-rate claims. The cases target the contract-pharmacy and PBM machinery FQHCs depend on to convert 340B discounts into patient-care revenue. A win — or even discovery — could set precedent for FQHC 340B clawback claims and reshape contract-pharmacy economics just as manufacturer restrictions and the rebate-model fight already squeeze the program.
Primary source
340B ReportFQHC Talent. (2026, May 21). Three health systems sue CVS/Caremark for ~$250M in alleged 340B savings diversion (RICO). Primary source: 340B Report. Retrieved June 9, 2026, from https://www.fqhctalent.com/intel/cvs-340b-rico-lawsuits-health-systems-may-2026
More in Risk & Compliance
Jul 5
Section 1557 Language Access Annual Notice Year 1 Anniversary — July 5, 2026 Compliance Window
Jun 9
FTCA CY2027 redeeming applications due June 26 — miss it and your FQHC has a malpractice-coverage gap
Jun 1
Two Compliance Signals for FQHCs: HRSA's FY2026 340B Manufacturer-Audit Results Go Live, and OCR's Ransomware Settlements Preview a Tougher HIPAA Security Rule
Jun 1
Eli Lilly Gives ~50 Covered Entities Five Days to Hand Over 340B Claims Data — or Lose Their Discounts