Skip to main content
U.S. flag

An official website of the United States government

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Prime Healthcare Services and CEO, Dr. Prem Reddy, to Pay $1.25 Million to Settle False Claims Act Allegations

PHILADELPHIA - U.S. Attorney William M. McSwain announced today that Prime Healthcare Services, Inc. ("Prime") and Prime's Founder and Chief Executive Officer, Dr. Prem Reddy, have agreed to pay the United States $1.25 million to settle allegations that two Prime hospitals in Pennsylvania - Roxborough Memorial Hospital in Philadelphia and Lower Bucks Hospital in Bristol - knowingly submitted false claims to Medicare by engaging in the following conduct: (1) admitting patients to the hospital for overnight stays who required only less costly, outpatient care and (2) billing for more expensive patient diagnoses than the patients had (the latter practice known as "up-coding").


Action Details

  • Date:February 14, 2019
  • Agency:U.S. Attorney
  • Enforcement Types:
    • Criminal and Civil Actions