Lex Reddy steps down at Prime amid pos­si­ble FBI in­quiry

Modern Healthcare - - LATE NEWS -

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.

Prem Reddy

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