Health ministry has launched a probe into the claims of medical negligence by Haa Dhaal Atoll Kulhudhuffushi regional hospital after allegedly mishandling an accident victim.
Ahmed Aseel, 18 years, suffered a spinal injury after crashing his motorbike on Sunday.
His family had alleged that Aseel's condition deteriorated due to medical negligence.
Doctors had accused Aseel of exaggerating the extent of his injuries after he failed to even sit-up while he was being treated at the hospital, family had said.
He has since been sent to India for treatment after his condition worsened.
Health ministry spokesperson Thasleema Ali said an investigation has been launched into the accusations.
The hospital has been asked to forward all medical records for analysis, she added.
She also vowed to take action against those responsible if negligence is found.
According to Aseel's family, he was airlifted to capital Male three days after the accident.
Doctors at the island hospital had orginally found no injuries.
However, doctors at the state run Indhira Gandhi Memorial Hospital (IGMH) had said Aseel had suffered multiple vertebral fractures, family had said.
Indian doctors fear that Aseel could suffer permanent paralysis due to the delay in receiving proper treatment.