An uprising within the ranks

An uprising within the ranks

It should surprise no one that glucose monitoring companies continue to slash costs and make deals to deal with the impact of competitive bidding.  LifeScan, a unit of Johnson and Johnson (NYSE:JNJ) and the current market leader in BGM, just signed a deal with CCS Medical which according to CCS; “ This agreement means that CCS Medical is a LifeScan Direct Mail Order Supplier with the ability to serve all Medicare beneficiaries and many commercial plan members who use LifeScan products, such as LifeScan’s OneTouch® Ultra® meter and test strips,” said Dirk Allison, CCS Medical President and Chief Executive Officer.”

At the other end of spectrum is Abbott (NYSE:ABT) Diabetes Care which according to sources within the company has cut their sales force even further. But this is just the tip of the iceberg for what’s going on within the company as Diabetic Investor has learned that several current Abbott employees are considering becoming whistleblowers as they believe the company is intentionally over-billing customers in a desperate attempt to make the unit’s performance look better than it really is. According to sources both within and outside the company when a customer discovers they have been over billed and requests that the company issue a credit for the amount that was over billed, Abbott is delaying issuing the credit, again in effort to make results look better than they really are.

Diabetic Investor has looked into these allegations for if they are true; Abbott could be guilty of fraud. Here’s what we know so far as we have spoken with sources inside Abbott and customers who do business with Abbott, this does not appear to an isolated incidence nor does it appear to be some type of billing error. Since no one will go one the record and the company isn’t talking either we have no way on knowing whether these very serious allegations are true, partially true or are completely baseless.

What we do know for a fact is that Abbott employees are on a rampage and very displeased with how management is dealing with, or should we say, not dealing with the changes that are taking place in the glucose monitoring market. Now disgruntled employees are nothing new at Abbott or anyone else in the BGM market as the impact of competitive is forever changing what was a very profitable business. What seems to be different this time is the extent to which Abbott employees want to put their employer into an extraordinarily uncomfortable position.

Based on everything Diabetic Investor has learned to date, we suspect this won’t be the last we hear about this and that like with so many situations in the wacky world of diabetes the real truth will never be known. As always we continue to investigate and will report any new developments as they become available.