Hospitals push back on Eli Lilly 340B restrictions while data centers face zoo opposition

Eli Lilly followed through on its 340B ultimatum late last week, halting discounted drug pricing to hospitals that failed to meet new paperwork requirements under the federal drug discount program. According to BioPharma Dive, affected hospitals are now urging the Health Resources and Services Administration to intervene. The move marks the latest flashpoint in ongoing tensions between drugmakers and healthcare providers over 340B compliance, a program designed to help safety-net hospitals serve low-income patients.

Separately, TechCrunch reports that competitive intelligence platform Klue confirmed hackers used a credential dating to 2022 to breach customer data. The credential, leftover from a limited pilot program, was never revoked—leaving a pathway open that attackers exploited to access encryption keys for customer information. The incident underscores persistent gaps in credential lifecycle management, even at firms whose business centers on monitoring competitive risk.

In Nashville, a local zoo has emerged as an unlikely opponent to data center expansion. Commercial Observer reports that DC Blox plans a 69,000-square-foot facility near the Nashville Zoo, which is now fighting the project over concerns about resource consumption—particularly water and power infrastructure. The clash represents a new variant of community opposition to data center buildouts, historically driven by residential or environmental groups rather than municipal institutions.

Two additional items rounded out the week's regulatory coverage. The Supreme Court dismissed a suit alleging Cisco's technology aided persecution of Falun Gong members in China, per the Associated Press. And in Texas, federal prosecutors charged a doctor in an $89 million fraud case, part of a broader administration push on healthcare enforcement.