Prime CEO Lex Reddy Resigns

Lex Reddy has stepped down from his position as president and CEO of Ontario, Calif.-based Prime Healthcare Services.

Prime's founder, Prem Reddy, MD, announced that Luis Leon will become COO of Prime while Mr. Reddy serves on an interim basis. "Lex Reddy has been an important part of our success, and he will be missed," Dr. Reddy said in the release. Mr. Reddy, who is Dr. Reddy's brother-in-law, served with the system since it was founded in 2001.

The system also said that the change in management is not related to legal events. "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," according to Prime.

A San Fernando Valley Business Journal report pointed out that Mr. Reddy's resignation was announced the day before Prime officials were scheduled to appear in a State Senate and Assembly Health Committee hearing in Los Angeles. The hearing is related to billing practices, including Prime's alleged Medicare billing for high rates of septicemia and conditions patients allegedly did not have.

More Articles on Prime Healthcare:

Prime Healthcare Acquires Philadelphia's Roxborough Memorial
"Political Forces" Caused Prime to Withdraw Bid for Christ Hospital in New Jersey
Prime Withdraws Bid for Christ Hospital in N.J.

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