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Prime Healthcare Settles Kickback Claims

Prime Healthcare Settles Kickback Claims
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Prime Healthcare, its founder and doctor pay $37 5M to settle whistleblower case alleging kickbacks, Stark violations and fraud

Share this article Share this article 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.

Prime Healthcare, doctors pay $37M to settle kickback claims

Prime Healthcare, doctors pay $37M to settle kickback claims July 20, 2021 GMT ONTARIO, Calif. (AP) Southern California-based Prime Healthcare Services and two of its doctors will pay $37.5 million to settle whistleblower lawsuits that claimed the hospital system paid kickbacks to one of the physicians and bought his practice for more than it was worth, prosecutors said Monday. Prime Healthcare entered into the settlement with federal and state prosecutors to resolve alleged violations of the False Claims Act, the U.S. Attorney’s Office said in a statement. The agreement resolves allegations that Prime and its founder Dr. Prem Reddy overpaid to purchase Dr. Siva Arunasalam’s physician practice and surgery center because the company wanted the cardiologist to refer patients to its Desert Valley Hospital in Victorville, prosecutors said.

California Announces $37 5 Million Settlement With Prime Healthcare Services

California Announces $37 5 Million Settlement With Prime Healthcare Services
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Prime Healthcare, doctors pay $37M to settle kickback claims

Prime Healthcare, doctors pay $37M to settle kickback claims
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