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Prime Healthcare, Doctors to Pay $37 Million to Settle Claims of Alleged Kickbacks


ONTARIO, Calif. — 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 July 19.
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. ....

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Indian-American doctors to pay $37.5 mn to settle allegations of kickbacks


Two Indian-American doctors and one of the largest hospital systems in the US have agreed to pay nearly USD 37.5 million to settle allegations of kickbacks for patient referrals, the Department of Justice said.
The settlement resolves allegations that Prime Healthcare Services system overpaid for California interventional cardiologist Dr Siva Arunasalam s physician practice and surgery centre because the company wanted him to refer patients to its Desert Valley Hospital in Victorville, California, it said.
The purchase price, which was substantially negotiated by Prime Healthcare Services founder and CEO Dr Prem Reddy, exceeded the fair market value and was not commercially reasonable, it said. ....

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