Chevron Overruled: A New Era of Regulatory Complexity for Healthcare and Pharma

The June 2024 Supreme Court decision overturning the Chevron deference doctrine marks a substantial shift in the regulatory landscape for the healthcare and pharmaceutical industries. For decades, agencies like the FDA, HHS and CMS relied on whitepapers to provide a degree of certainty in interpreting and implementing complex regulations. This certainty offered valuable guidance to industry stakeholders. With Chevron overturned, the authority to interpret regulations now rests primarily with the courts. 

The Looming Uncertainty

The implications of this shift are far-reaching. What happens to the thousands of existing whitepapers? Can companies, who were on the “losing” end of a whitepaper interpretation, now challenge those regulations in court? 

Additionally, the transition from agency-led interpretation to court-centered adjudication could lead to increased litigation as disputes once resolved administratively will likely require judicial intervention. What was once a matter of months to resolve through administrative processes could now take years in litigation.

This is a pivotal moment for regulated industries. The full impact of the Chevron decision is still unfolding. Companies should carefully assess their existing compliance programs and identify potential areas of vulnerability. It’s crucial for industry leaders to stay informed, adapt their strategies, and be prepared for the challenges ahead.