DOJ Lawsuit Against Modern Vascular Lacks Merit
Phoenix, Arizona, Dec. 27, 2022 (GLOBE NEWSWIRE) -- After more than two years of investigating Modern Vascular based on qui tam complaints, the Department of Justice filed a complaint in intervention, alleging that Modern Vascular violated the anti-kickback statute. The complaint is premised on the DOJ’s disagreement with one element Modern Vascular’s business structure: the fact that some of its investors are also physicians. The government’s complaint lacks merit and Modern Vascular’s business practices comply with the spirit and the letter of the law.
Absent from the complaint are allegations that Modern Vascular’s specialists have performed medically unnecessary procedures or caused patient harm. And regarding the anti-kickback allegations, there are no allegations that the organization created fake documents, made illicit payments, or falsified invoices. Indeed, the DOJ’s complaint tacitly admits that no investor of Modern Vascular has ever received a payment based on the volume of referrals while disregarding Modern Vascular’s multiple compliance safeguards.
The Complaint doesn’t mention the true Modern Vascular story. There is no mention of the fact that the organization’s main goal is to manage patients’ disease by avoiding expensive medical procedures. The overwhelming majority of Modern Vascular patients are not referred by investors. There is no connection between the number of referrals and the financial success of the organization. And regarding our patients, hundreds, if not thousands, of Modern Vascular patients have gone on to enjoy a successful life with their limbs intact. Our competitors, who filed the qui tam complaints, would rather cut off a limb than look to our less invasive and limb-saving treatment.
Yury Gampel, the Chairman of the Board of Directors of Modern Vascular, had this to say in response: “While we are heartened that the government dropped many of the unsupported allegations of the qui tam actions, its continued insistence on challenging our business structure – which is compliant with law – is frustrating, to say the least. We were cooperative and the government reviewed tens of thousands of documents over the course of two years. We had hoped that the government would appreciate how our organization runs and how much we care about compliance. The services we provide patients are important. When a patient doesn’t receive the proper treatment for PAD, the disease progresses, and a patient ultimately may need to go through an amputation. The risk of death after an extremity amputation in three years’ time is comparable to the risk of death in cases of advanced cancer.”