California Lawmakers Hold Hearing Over Prime's Billing Practices

Ontario, Calif.-based Prime Healthcare Services attended a hearing in Los Angeles on Friday with the state's Senate Health Committee over its billing practices, but a Prime official said the hearing was "clearly about politics," according to a Los Angeles Times report.

California Senator Ed Hernandez (D), chairman of the committee, called the hearing after he heard criticism that Prime was overbilling for medical services and refusing to transfer stabilized patients to hospitals in their insurance network to increase revenue.

Michael Sarrao, Prime's vice president and general counsel, said the system is being "unfairly singled out" and said its billing practices are appropriate, according to the report. He also said unions negotiating with Prime were trying to build political opposition and that the hearing was held for political purposes.

Adam Weisberg, a spokesperson from Service Employees International Union, along with a patient's relative and a physician network executive, spoke about Prime's alleged improper billing at the hearing, according to the report. Sen. Hernandez said he will continue examining the issue and that the hearing "shed a lot of light on the problem," according to the report.

A day before the hearing, Lex Reddy stepped down from his role as Prime's president and CEO for unspecified personal reasons.

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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