Prime Healthcare Services

Prime Healthcare Services (Prime) is a hospital management company in Southern California. Founded by Dr. Prem Reddy in 2001, it is based in Victorville and Chino in California. It currently owns and operates 8 acute care hospitals. Prime is expanding its portfolio rapidly. However, its recent attempt to acquire Anaheim Memorial Medical Center was denied by the California Attorney General's office.

Subsidiaries
As of May, 2007, Prime Healthcare operated 8 hospitals and a medical group in 4 regions (San Diego region, Inland Empire region, Orange County and Los Angeles metro) of Southern California.
 * Desert Valley Hospital
 * Chino Valley Medical Center
 * Montclair Hospital Medical Center
 * Paradise Valley Hospital
 * La Palma Intercommunity Hospital
 * Huntington Beach Hospital
 * West Anaheim Medical Center
 * Sherman Oaks Hospital

Criticism
On July 8, 2007, the Los Angeles Times ran a news story that alleged that the policies of Prime HealthCare Services, Inc. resulted in higher than average profits at the possible cost of patient care. But, "state data show Prime Healthcare hospitals have increased charity care to the uninsured". According to the Times story, "When Reddy's company, Prime Healthcare Services Inc., takes over a hospital, it typically cancels insurance contracts, allowing the hospital to collect steeply higher reimbursements. It has suspended services — such as chemotherapy treatments, mental health care and birthing centers — that patients need but aren't lucrative.... On four occasions since 2002, inspectors have found that Prime Healthcare facilities failed to meet minimum federal safety standards, placing their Medicare funding at risk." However, the "hospitals continued to score highly on national accreditation surveys, including Desert Valley Hospital, which scored 98% on its most recent survey." Prime silenced its critics when its latest acquisition, Paradise Valley Hospital, that had difficulties in its prior accreditation was awarded full accreditation with Gold Seal of Approval, under Prime's management. Though Prime did lay off close to 200 employees circumventing WARN Act and reneging on a promise made to PVH's employees.