U.S. Accuses Abbott Labs of Billing Scheme

Abbott bumped up the reported price of the intravenous antibiotic vancomycin as much as 18 times what it charged healthcare providers, knowing that the Medicare and Medicaid programs would reimburse the providers based on the manufacturer's price, according to a whistle-blower lawsuit unsealed Thursday.

Abbott, based in Abbott Park, Ill., participated in such a billing scheme because hospitals, pharmacies and other providers would get to pocket the difference and would be more likely to prescribe the company's products again, the Justice Department contended.

Abbott spokeswoman Melissa Brotz said the company had complied with all federal laws.