For the second time in the last three months, Dr. Prem Reddy and his signature enterprise, Prime Healthcare Services, find themselves militating to overcome the interference of a substantial law enforcement authority in the effort to maintain and expand Prime Healthcare as one of the largest health care providers in the state of California.
In the most recent case, the FBI has reportedly interested itself in Prime Healthcare’s billing practices with regard to services rendered to elderly patients. The FBI investigation follows an unsuccessful effort by the California Attorney General’s Office to block Prime Healthcare’s arrangement with Victor Valley Community Hospital to take on a managerial and operational role at that struggling hospital.
According to three well-placed sources, the FBI is interviewing current and former Prime Healthcare employees with regard to billing practices at Prime Healthcare Services.
Prime Healthcare, which was founded by Reddy in 1985, is today the largest operator of medical facilities in Southern California and it owns 14 hospitals in California and one hospital in Texas.
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