Prime Healthcare Services

Prime Healthcare Services (Prime) is a hospital management company in Southern California. Founded by Dr. Prem Reddy in 2001, it is based in Ontario, California. As of December 2010, Prime Healthcare operated 14 hospitals and a medical group in 5 regions: San Diego region, Inland Empire region, Orange County, Los Angeles metro, and Redding in Northern California.

Controversy

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 Dr. 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.

On July 8, 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, "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.......
Read More