Violation Tracker Individual Record

Company: 
Prime Healthcare Services, Inc. et al.
Current Parent Company: 
Prime Healthcare Services Inc.
Penalty: 
$61,750,000
Year: 
2018
Date: 
August 3, 2018
Primary Offense: 
False Claims Act
Violation Description: 

Prime Healthcare Services, Inc., Prime Healthcare Foundation, Inc., and Prime Healthcare Management, Inc. as well as Prime's Founder and Chief Executive Officer, Dr. Prem Reddy, 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). Under the settlement agreement, Dr. Reddy will pay $3,250,000 and Prime will pay $61,750,000.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Justice Department Civil Division
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
California
Ownership Structure of Parent: 
privately held
Major Industry of Parent: 
healthcare services
Specific Industry of Parent: 
hospitals
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.