Prime Healthcare Taking Legal Action Against News Outlet Claiming Fraudulent Billing

Ontario, Calif.-based Prime Healthcare has commenced litigation against California Watch, an investigative news outlet that alleged the investor-owned hospital chain extended patients' length of stay and overstated their level of illness for economic reasons in order to receive higher payments.

Prime Healthcare, in a news, release, said California Watch relied on manipulated data and "unsubstantiated allegations" by the Service Employees International Union, a labor union with which the hospital operator has had a tumultuous relationships.

Specifically, Prime argues that comparing Prime ER admission rates with a state average is "is not a fair way of reviewing admission rates as admissions patterns vary widely based on a lot of factors such as geography, average age of the seniors, how sick the seniors are, whether the patients come from nursing homes and board and care, belong to Medicare HMOs or not, and how busy the ER is and how often it closes," according to the statement.

Prime also claims it is unaware of any ongoing federal investigation into its billing practices, rejecting a statement the healthcare system claims California Watch made.

Read the release on Prime Healthcare.

Related Articles on Prime Healthcare:
Investigation Claims California's Prime Healthcare Admitted Patients for Economic Reasons
California's Prime Healthcare to Buy Bankrupt Victor Valley Hospital
Prime Healthcare Services Withdraws Bid For Rhode Island's Landmark Medical Center

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