Regulators finalized a Medicare rule that will cut payments for drugs in the 340B program and expand site-neutral payments starting in 2027, according to the report. Hospitals have warned the change would squeeze margins, affecting both access and willingness to participate in 340B arrangements. For biotech stakeholders, the shift is expected to alter where and how infused and outpatient drugs are delivered, with knock-on effects for manufacturer contracting and patient access pathways. The final rule also signals continued policy momentum toward equalizing reimbursement across care settings. BIO and other advocacy groups have previously argued that policy protections are needed to sustain investment in specialty therapies, especially for smaller patient populations. This latest Medicare decision intensifies the debate over whether reimbursement reforms inadvertently change innovation incentives. The timing—site-neutral expansion and 340B cuts beginning in 2027—creates a near-term planning window for health systems and payers to adjust purchasing, staffing, and contracting models.