Hospitals are furious about cuts to an outpatient drug discount program. Photo: Gerry Broome / AP

Three hospital lobbying groups — the American Hospital Association, America's Essential Hospitals and the Association of American Medical Colleges — are suing the Centers for Medicare & Medicaid Services after the agency finalized a rule Wednesday that would drastically cut outpatient drug payments under the federal 340B drug discount program.

The big picture: The Trump administration is siding with the pharmaceutical industry, doctors and some independent researchers who have argued hospitals are abusing the 340B drug program by pocketing profits that are meant to lower the costs of drugs for poor patients. But many hospitals of last resort are at risk of losing millions of dollars, which spurred the federal suit.

The details: Hospitals that participate in the 340B program currently receive 6% on top of the drug's average sales price. Starting next year, they will get the average sales price minus 22.5%. That will result in $1.6 billion in cut payments to hospitals.

The finalized policy is the same as what was proposed over the summer, but some experts believed CMS would backpedal and keep the status quo. There's still a chance the drug payment cuts could be avoided if the courts issue an injunction.

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Updated 34 mins ago - Health

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

France reported more than 2,500 new COVID-19 cases in 24 hours — the largest single-day number since May. French officials said the situation was "clearly worsening," per France 24.

By the numbers: Over 745,600 people have died of the novel coronavirus globally and over 20.4 million have tested positive, per Johns Hopkins. Almost 12.7 million have recovered from the virus.

Biden campaign raises $26 million in 24 hours after announcing Harris as running mate

Joe Biden and Kamala Harris. Photo: Olivier Douliery/AFP via Getty Images

Joe Biden's campaign announced on Wednesday that it raised $26 million in the 24 hours after revealing Sen. Kamala Harris as his vice presidential pick.

Why it matters: The cash influx signals that Harris has helped the Democratic presidential campaign pick up steam. Nearly 150,000 contributors were first-time donors, according to the campaign statement.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 20,456,016 — Total deaths: 745,600— Total recoveries: 12,663,206Map.
  2. U.S.: Total confirmed cases as of 7 p.m. ET: 5,190,948 — Total deaths: 165,883 — Total recoveries: 1,714,960 — Total tests: 63,252,257Map.
  3. Politics: Pelosi says Mnuchin told her White House is "not budging" on stimulus position.
  4. Business: U.S. already feeling effects of ending unemployment benefits.
  5. Public health: America's two-sided COVID-19 response America is flying blind on its coronavirus response.
  6. Education: New Jersey governor allows schools to reopenGallup: America's confidence in public school system jumps to highest level since 2004.