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LOS ANGELES, July 19, 2021 /PRNewswire/ Prime Healthcare, its founder and CEO, Dr. Prem Reddy, and a California cardiologist have agreed to pay a total of $37.5 million to the federal government and the state of California to settle a whistleblower lawsuit filed by Phillips & Cohen LLP that alleged the hospital chain paid kickbacks to the cardiologist, buying his practice and surgical center for far more than they were worth.
Phillips & Cohen partnered with Cotchett Pitre & McCarthy (CPM) to litigate the case.
This appears to be the largest settlement of a case alleging kickbacks paid by a hospital chain to a single physician. Prime operates one of the biggest hospital systems in the nation.