Whistleblower Lawsuit Accuses NantHealth of Fraud

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Whistleblower Lawsuit Accuses NantHealth of Fraud

Whistleblower Lawsuit Accuses NantHealth of Fraud


Health technology firm NantHealth is facing a lawsuit filed by two former executives alleging the company committed fraud. According to the New York Times, the wrongful-termination lawsuit was filed in a federal court in Panama City, Fla.

NantHealth’s system is meant to link patient information using different medical devices and pieces of hospital equipment. The company is owned by a billionaire surgeon and business entrepreneur whose business relationships have been scrutinized in the past. Over a decade ago, NYT reported that the surgeon headed a drug company with financial ties to Premier; the major purchaser of supplies for hospitals nationwide is not supposed to have such conflicts of interest.

The employees who filed the suit say that they were hired last year year to assist with the company’s first planned sale of public stock. Allegedly, they quickly realized that the medical data gathering system did not work and that NantHealth’s claims are false and misleading. According to NYT, the suit alleged that one company-sponsored review found the system to be “10 years behind in technology capabilities,” Furthermore, an executive of one hospital using NantHealth’s system allegedly threatened to stop using it and warn other hospitals of the problem due to poor performance. The whistleblowers also allege that the company may have used donations to attract federal funds so a hospital could purchase its products.