In a letter addressed to the attorney general, the SEIU urged Mr. Porrino use his authority to force the sale of five New Jersey hospitals owned by the Ontario, Calif.-based hospital operator to protect “their charitable assets and protect the quality and accessibility” of their services.
Union officials argued the Department of Justice’s recent decision to join lawsuit against Prime could negatively impact its hospital assets. The suit, filed in May under the qui tam provision of the False Claims Act, alleges Prime improperly billed Medicare regarding patients’ observation status.
If Prime is found guilty, it could be barred from receiving funding through federal programs. SEIU argued this could severely compromise the quality of care at Prime’s New Jersey hospitals.
Prime spokesperson Fred Ortega said in a prepared statement, “This letter is simply the latest attempt by SEIU to publicly smear Prime Healthcare as part of its ongoing corporate campaign to extract bargaining concessions from Prime hospitals.”
Prime’s New Jersey hospitals include St. Mary’s GeneralHospital in Passaic, St. Michael’s MedicalCenter in Newark and three hospitals in Dover, Denville and Boonton that belong to St. Clare’s Health System.
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