Prime Healthcare Services and CEO to Pay $65 Million to Settle False Claims Act Allegations

Prime Healthcare Services, Inc., Prime Healthcare Foundation, Inc., and Prime Healthcare Management, Inc. (collectively Prime), and Prime’s Founder and Chief Executive Officer, Dr. Prem Reddy, have agreed to pay the United States $65 million to settle allegations that 14 Prime hospitals in California knowingly submitted false claims to Medicare by admitting patients who required only less costly, outpatient care and by billing for more expensive patient diagnoses than the patients had (a practice known as “up-coding”), the Justice Department announced today. Under the settlement agreement, Dr. Reddy will pay $3,250,000 and Prime will pay $61,750,000.

Source: Prime Healthcare Services and CEO to Pay $65 Million to Settle False Claims Act Allegations / US Department of Justice

Leave a Reply

Your email address will not be published.