Hospital Chain Prime Healthcare to Pay $65M to Settle Fraud Claims
Prime Healthcare, the nation's fifth-largest hospital chain, has agreed to settle a federal whistleblower case filed by a nurse in one of the company's California hospitals.
August 03, 2018 at 05:40 PM
1 minute read
Marlan Wilbanks, Wilbanks & Gouinlock, Atlanta (Photo: John Disney/ ALM) The nation's fifth-largest hospital chain has agreed to pay the federal government $65 million to settle a long-running whistleblower lawsuit accusing its founder of pressuring staff to admit patients who did not need inpatient care. Prosecutors in the Central District of California in Los Angeles intervened in the lawsuit in 2016. Prime Healthcare Services owns more than 40 hospitals across the nation, including recently acquired Southern Regional Medical Center in Clayton County, Georgia. Reddy, his company, its California hospitals and his foundation are represented by Los Angeles firm Nelson Hardiman and Atlanta King & Spalding partners Michael Paulhus and Sara Kay Wheeler. Wilbanks said that Bernsten will receive $17,225,000 as part of the settlement under the federal False Claims Act.
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