Lex Reddy stepped down as president and CEO of Prime Healthcare Services, Ontario, Calif., and will be replaced on an interim basis by Dr. Prem Reddy, the for-profit company's chairman and founder and Lex Reddy's brother-in-law, according to a news release from the company (PDF).
Prime Healthcare CEO Lex Reddy steps down
In addition, Luis Leon, regional CEO of Prime's San Diego region was promoted to the position of chief operating officer, a position that is either new or was unfilled, according to the company's website. Ages for the three were unavailable from the company.
Former employees of the company are reportedly being questioned by the FBI about Prime's billing practices, and state legislators are set to question the company's attorney today at a hearing on hospital reimbursement, according to California Watch, an initiative of the Center for Investigative Reporting.
But Prime's new release on the announcement said that “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.”
Prime this week had announced the purchase of 137-bed Roxborough Memorial Hospital in Philadelphia from Solis Healthcare, Philadelphia. Prime's bid to purchase Christ Hospital in Jersey City, N.J., was withdrawn after a community protest against for-profit ownership of the hospital.
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