Lex Reddy steps down at Prime amid possible FBI inquiry
Lex Reddy stepped down as president and CEO of Prime Healthcare Services, Ontario, Calif., and will be replaced on an interim basis by Dr. Prem Reddy, the forprofit company’s chairman and founder and Lex Reddy’s brother-in-law, according to a news release from the company. In addition, Luis Leon, regional CEO of Prime’s San Diego region was promoted to the position of chief operating officer, a position that is either new or was unfilled, according to the company’s website. Ages for the three were unavailable from the company. Former employees of the company are being questioned by the FBI about Prime’s billing practices, and state legislators questioned the company’s attorney Feb. 24 at a hearing on hospital reimbursement, according to several news reports. But Prime’s news release on the announcement said that “contrary to certain media reports, Prime Healthcare is not aware of any federal or state review. Prime Healthcare is confident that even if there are, the facts will demonstrate that the company has complied with all statutes and regulations.” Prime earlier announced the purchase of 137-bed Roxborough Memorial Hospital in Philadelphia from Solis Healthcare, Philadelphia. Prime’s bid to purchase Christ Hospital in Jersey City, N.J., was withdrawn after a community protest against for-profit ownership of the hospital.