Shasta Regional Medical Center

At Redding Medical Center, the early-2000s investigation, raid and litigation were prompted because "physicians undertook large volumes of inappropriate and unnecessary procedures on largely healthy patients".[10] The investigation into Moon and Realyvasquez was the result of multiple whistleblower lawsuits filed under the Federal False Claims Act alleging unnecessary medical procedures.[11] Catholic Priest John Corapi,[12] Joseph Zerga and Redding physician Patrick Campbell split 15% of the total $62.55 million settlement.[13]

Tenet had already agreed to pay $54 million in 2003 to settle the federal case without admitting any wrongdoing but with an agreement for new oversight procedures for physicians and staff.[14] In 2004, Tenet established a $395 million fund for 769 cardiac patients to settle civil suits relating to procedures performed by Moon and Realyvasquez.[15][16]

There was evidence that Prime Healthcare Services engaged in upcoding elderly patients to malnutrition. At Shasta Regional Medical Center, Prime reported 16.1% of their Medicare patients suffered from kwashiorkor. The state of California average for Medicare patients is 0.2% suffering from kwashiorkor. Prime Healthcare Services was investigated for Medicare fraud by United States Department of Health and Human Services and the California Department of Justice.[17]

In 2013, SRMC agreed to a settlement regarding claims of HIPAA violations when 2 senior leaders met with a reporter to discuss medical services provided to a patient.[18]

In 2021, Prime Healthcare & 2 doctors agreed to pay $37.5 Million to settle allegations of violations of the California False Claims Act.[19]