Corporate Integrity Agreement with Prime Healthcare Services, Inc., and Prime Healthcare Foundation, Inc., f.k.a. PHSI Foundation, Inc., f.k.a. Prime Healthcare Services Foundation, Inc.; Prime Healthcare Management, Inc., f.k.a. Prime Management Services, Inc.; Alvarado Hospital, LLC; Prime Healthcare Services Garden Grove, LLC; Prime Healthcare Huntington Beach, LLC; Prime Healthcare La Palma, LLC; Desert Valley Hospital, Inc.; Prime Healthcare Services Encino, LLC; Veritas Health Services, Inc.; Prime Healthcare Services Montclair, LLC; Prime Healthcare Paradise Valley, LLC; Prime Healthcare Services San Dimas, LLC; Prime Healthcare Services Shasta, LLC; Prime Healthcare Anaheim, LLC; Prime Healthcare Centinela, LLC; Prime Healthcare Services Sherman Oaks, LLC; Roxborough Memorial Hospital; Lower Bucks Hospital; and Prem Reddy, M.D.

AGREEMENT PRESS RELEASE

Prime Healthcare Services and Two Doctors Agree to Pay $37.5 Million to Settle Allegations of Kickbacks, Billing for a Suspended Doctor, and False Claims for Implantable Medical Hardware

July 19, 2021

Published by the United States Department of Justice | View article on www.justice.gov

One of the largest hospital systems in the nation and two of its doctors will pay $37.5 million to resolve violations of the False Claims Act and the California False Claims Act. The settlement is a joint resolution with the U.S. Department of Justice and the California Department of Justice. The United States and California entered into a settlement agreement with the Prime Healthcare Services system (Prime), Prime’s Founder and Chief Executive Officer Dr. Prem Reddy, and California interventional cardiologist Dr. Siva Arunasalam to resolve alleged violations of the False Claims Act and the California False Claims Act based on kickbacks paid by Prime to Dr. Arunasalam for patient referrals.