Prem Reddy

Reddy was born in a rural village called Niduguntapalem, Nellore district in southern India. He graduated from Sri Venkateswara University Medical College in 1973. In 1976 Reddy and his wife immigrated to the United States.

Reddy, who holds an MD, FACC, and FCCP, is a board-certified physician in internal medicine and cardiology. He is a Fellow of the American College of Cardiology and the American College of Chest Physicians. During two decades of practice, Reddy performed more than 5,000 cardiac procedures (such as coronary angiography and angioplasty, and permanent pacemaker implantations).[1] Reddy is no longer licensed to practice medicine in California.[2]

On 8 July 2007, the Los Angeles Times ran a news story that alleged that the policies of Prime HealthCare Services, Inc. resulted in higher than average profits at the possible cost of patient care. According to the Times story,[7]

When Reddy's company, Prime Healthcare Services Inc., takes over a hospital, it typically cancels insurance contracts, allowing the hospital to collect steeply higher reimbursements. It has suspended services—such as chemotherapy treatments, mental health care and birthing centers—that patients need but aren't lucrative.... On four occasions since 2002, inspectors have found that Prime Healthcare facilities failed to meet minimum federal safety standards, placing their Medicare funding at risk.

In 2005, two former nurses at Desert Valley Hospital won a lawsuit in which they claimed they were improperly fired after they accused hospital management of providing inadequate care to save money and Reddy of repeatedly reporting to work while under the influence of alcohol. In February 1999, Reddy was arrested for allegedly attacking Harry Lifschutz at Desert Valley Medical Group. Reddy jumped over a desk in the doctor's waiting room and allegedly attempted to choke him and take a laptop from Lifschutz's office.[7]

Prime Healthcare Services is understood by the United States Department of Health and Human Services and the California Department of Justice about concerns over a reported spike in sepsis. The investigation centers around whether the spike in sepsis represents a large public health issue or potential Medicare fraud. Six Prime hospitals ranked in the 99th percentile of U.S. hospitals for sepsis and five were in the 95th percentile.[8]

Prem Reddy was personally liable in a negotiated settlement regarding False Claims at 14 Prime Hospitals.[9] Out of the $65 million settlement, he had to pay $3.25 million.[9]

In July 2021 US Department of Justice announced another settlement with Prime Health Care and Prem Reddy concerning kickbacks, overcharging for medical implants, and billing for a non-eligible provider by using another provider's billing identity. The violations directly implicated Dr. Reddy in the kickbacks. Reddy paid $1,775,000; and Prime paid $33,725,000.[10]

• Prime Healthcare Services
• Kavitha Bhatia

• Personal website
• Prime Healthcare