Prime Healthcare CEO Accused Of Strong-Arming Doctors Into Hospitalizing Patients
California cardiologist Prem Reddy's actions are at the heart of a lawsuit brought by an employee and the Justice Department over his Medicare billing practices.
The Wall Street Journal:
Hospital Chain’s CEO Faces Lawsuit Over Business Practices
Over the past decade and a half, California cardiologist Prem Reddy has built Prime Healthcare Service Inc. into one of the largest for-profit hospital chains in the U.S. by targeting distressed hospitals for acquisition. He boasts that his aggressive turnaround strategies have righted the finances of each and every one. But the chief executive has also attracted criticism, including claims that he plays hardball with insurers. Now Dr. Reddy is the central figure in a lawsuit brought by an employee and the Justice Department alleging that he strong-arms doctors in an effort to unnecessarily hospitalize patients at Medicare’s expense. (Evans, 7/31)
In other hospital news —
Sacramento Bee:
Hospitals Say No To ‘Pokémon Go’
Any Pokémon-loving child stuck in a hospital bed would probably be ecstatic to see an Eevee or a Squirtle, two especially cute characters on the popular animated game “Pokémon Go,” wandering around the hallways or even their own rooms.
Trouble is, the elusive creatures aren’t always hanging around pediatric wards, and some kids are too sick to get out and “catch ’em all.” That’s why well-intentioned strangers have been placing “lures,” or virtual Pokémon-attracting devices, in Sacramento hospitals, causing staff to worry over privacy and security threats – and in some cases to even ban the game. (Caiola, 7/30)
The San Diego Union-Tribune:
Hospital’s Energy Plant Knocks Bill Down To Zero
Sharp Grossmont Hospital is off the electrical grid and its new on-site Central Energy Plant is already saving the La Mesa hospital hundreds of thousands of dollars a month. State regulators approved the hospital’s natural gas plant plans in 2012. Construction began in 2013. The plant began operating earlier this year. The Grossmont Healthcare District, the hospital’s landlord, reports that because of the plant, the hospital’s normal energy bill to SDG&E of nearly $180,000 per month is now zero. (Pearlman, 7/29)