Prem Reddy

Executive looking out window

Photo credit: Getty/Tom Merton

The alleged: Prem Reddy, founder of Prime Healthcare Services and Lex Reddy, former CEO

Prem Reddy
Prem Reddy

The place: Ontario, California

The charges: Both executives were caught in the crosshairs in 2011, when Prime was investigated by the FBI for overbilling Medicare.

The outcome: Lex Reddy resigned in 2012 and Prime was hit with a whistleblower suit in 2014 over its billing practices.

In the latest update to the ongoing case, the Department of Justice joined the whistleblower suit in May, after its investigation found evidence that Prem Reddy pressured emergency physicians to admit patients who did not need inpatient care.

In June, the DOJ filed a complaint which found that Prime’s management was closely involved with driving up the admission rates of Medicare beneficiaries.

The case is ongoing.

Prem Reddy