Prime Healthcare services and two Indian-American doctors have agreed to pay $37.5 million in a joint settlement with the US Department of Justice and the California Department of Justice, under the False Claims Act and the California False Claims Act.
Dr. Siva Arunasalam a cardiologist from California was brought before the Department of Justice on the allegations of being paid kickbacks by Prime’s Founder and Chief Executive Officer Dr. Prem Reddy to refer patients to Desert Valley Hospital in Victorville, California. The settlement of $1,775,000 has been paid by Dr. Reddy, while Prime paid $33,725,000 and Dr. Arunasalam is yet to pay $2,000,000. This is not a new occurrence for Prime Healthcare and Dr. Reddy. In 2018, they were charged with false claims and overbilling to settle that at present they paid $65 million.