NewsCalifornia News

Actions

Prime Healthcare, doctors pay $37M to settle kickback claims

Gavel (FILE)
Posted
and last updated

ONTARIO, Calif. (AP) — Southern California-based Prime Healthcare Services and two of its doctors will pay $37.5 million to settle whistleblower lawsuits that claimed the hospital system paid kickbacks to one of the physicians and bought his practice for more than it was worth.

Prosecutors said Monday that Prime Healthcare entered into the settlement with federal and state prosecutors to resolve alleged violations of the False Claims Act.

The agreement resolves allegations that Prime and its founder Dr. Prem Reddy overpaid to purchase Dr. Siva Arunasalam’s physician practice and surgery center because the company wanted the cardiologist to refer patients to its Desert Valley Hospital in Victorville.

,

Weather

Daily Forecast

View Hourly Forecast

Day

Conditions

HI / LO

Precip

Tuesday

07/01/2025

Clear

-° / 72°

0%

Wednesday

07/02/2025

Clear

103° / 73°

0%

Thursday

07/03/2025

Clear

103° / 71°

0%

Friday

07/04/2025

Clear

96° / 66°

0%

Saturday

07/05/2025

Clear

96° / 68°

0%

Sunday

07/06/2025

Clear

99° / 70°

0%

Monday

07/07/2025

Clear

101° / 71°

0%

Tuesday

07/08/2025

Mostly Clear

103° / 73°

0%