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Prime Healthcare, doctors to pay $37.5 million to settle lawsuit alleging kickback scheme involving Desert Valley Hospital

Victorville Daily Press
Prime Healthcare, its CEO Dr. Prem Reddy and a cardiologist will pay $37.5 million to settle allegations that the company paid kickbacks to the cardiologist when it purchased a rival medical practice in exchange for patient referrals to the company s Desert Valley Hospital in Victorville.
The settlement follows two whistleblower lawsuits, one which also claimed that Prime submitted fraudulent invoices to government healthcare programs with inflated prices for medical implants so the company could receive more money for reimbursement.
The law firm Phillips & Cohen which represented one of the whistleblowers, former Prime employee Martin Mansukhani said the settlement appeared to be the largest “brought against a hospital over kickbacks allegedly paid to a single physician.” ....

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Prime Healthcare, its founder and doctor pay $37.5M to settle whistleblower case alleging kickbacks, Stark violations and fraud

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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. ....

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