Whistleblower: Abbott Laboratories and Hawaiian provider colluded to use more medical devices
A whistleblower has filed a lawsuit against Abbott Laboratories, alleging the medical device company illegally provided an opportunity for a Hawaii-based medical practice to use its products for atherectomy procedures.
The former Abbott sales representative turned whistleblower, Kris Ghosh, said in a complaint that he witnessed Pacific Vascular Institute engage in an arrangement with his company to perform unnecessary medical procedures to boost sales of Abbott devices.
Incidents Ghosh said he witnessed date back to 2023. When he raised concerns about the relationship between the provider group and Abbott violating federal law, Ghosh said he was fired.
He filed his lawsuit under provisions of the False Claims Act that allow whistleblowers to bring lawsuits on behalf of the federal government, in exchange for part of any lawsuit or settlement award against the company.
Notably, Pacific Vascular is not named as a defendant in the lawsuit, according to a report from the Honolulu Civil Beat.
The outlet added that the allegations come amid growing scrutiny of outpatient vascular treatment centers. Specifically, a 2023 New York Times investigation reported that approximately $1.4 billion in Medicare atherectomy payments between 2017 and 2021 went to 200 high-volume providers. That report examined financial relationships between device manufacturers and vascular clinics, questioning whether some procedures were medically necessary.
Abbott has denied any allegations of collusion or fraud made by Ghosh. The company added that he attempted to pursue similar claims when he worked in another state, which were rejected by the court.
Additionally, Pacific Vascular denied the allegations, calling them categorically false.
The Anti-Kickback Statute prohibits offering or receiving remuneration in exchange for referrals or the use of products and services reimbursed by federal healthcare programs. Under changes included in the Affordable Care Act, Anti-Kickback violations can also trigger False Claims Act liability.
The lawsuit is pending and the claims have not been resolved.
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