Prem Reddy

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Dr. Prem N. Reddy (born 1948 in India) is a cardiologist and an owner of Prime Healthcare Services, Inc., which owns 45 hospitals in California and the United States.

Life and career[edit]

Reddy was born in a rural village called Niduguntapalem in southern India. He graduated from Sri Venkateswara University Medical College in 1973. In 1976 Reddy and his wife immigrated to the United States.

Reddy, holding an MD, FACC, and FCCP, is a board-certified physician in internal medicine and cardiology. He is a Fellow of the American College of Cardiology and the American College of Chest Physicians. During two decades of practice, Reddy performed more than 5,000 cardiac procedures (such as coronary angiography and angioplasty, and permanent pacemaker implantations).[1] Reddy is no longer licensed to practice medicine in California.[2]

Healthcare management and entrepreneurship[edit]

In the early 1980s, Reddy founded Desert Valley Medical Group in Victorville, CA and established Primecare Medical Group in 1992. He also founded PrimeRx, with 250,000 managed care patients, generating over $500 million in revenues a headquartered in Las Vegas, Nevada. He established Desert Valley Hospital in 1994 which today stands as the flagship hospital in the California healthcare system known as Prime Healthcare Services. Desert Valley Hospital has been recognized as a Top 100 Hospital in the Nation on numerous occasions.[3]

In 2013 eight Prime Healthcare Hospitals were named in the "Top 100 Hospitals in the Nation" by Truven, formerly Thomson Reuters. Hospitals that receive these awards are noted for their high clinical standards, "that achieve the highest national scores based on 14 separate measures of hospital performance - operational, clinical and financial - that affect patients as well as the quality of care in the community."[4] Prime Healthcare Services was recognized as a "Top 15 Health System" in 2013, the third time they have been on the list in five years.[5]

Charity and recognition[edit]

Reddy and his wife have donated over $10 million to causes related to the healthcare industry and caring for others. In 1989, he established the Desert Valley Charitable Foundation with an initial gift of $1 million. Since then, he has contributed over $5 million to the Foundation.

Reddy established Desert Valley Hospital’s Foundation which awards $100,000 in scholarships each year to local students pursuing a medical or healthcare career. The amount each recipient received this year was based on the student’s financial situation and which school he or she attends.[6] As Chairman of the Board of Prime Healthcare Services he established a Foundation which has made significant contributions to healthcare related causes including a $100,00 donation to benefit Community Care Health Centers in Orange County, CA.[7]

The Victor Valley College Foundation in Victorville, CA, has honored Reddy for the largest private donation in the history of the College. His million dollar gift in 2003 resulted in the naming of its Allied Health Program as "Dr. Prem Reddy School of Allied Health and Nursing." The donation directly addresses the nursing shortage while assisting the next generation of healthcare professional with scholarships and grants. Reddy has also donated a public health library to the High Desert community of Southern California as well as a Senior Wellness Center in Apple Valley to serve the senior community in the High Desert.[8] Victor Valley Community Hospital recently received a $750,000 donation for new equipment from Reddy.[9]

The Western University of Health Sciences in Pomona, CA, named its largest lecture hall the "Dr. Prem Reddy Lecture Hall" in honor of his many contributions to education in the health care field. He donated a $1 million gift to the Circle of Care Foundation at Sherman Oaks Hospital in Sherman Oaks, CA which helps support burn survivors, seniors, and family care givers.[10] The American College of Cardiology in Bethesda, Maryland, designated Reddy a Member of The Order of William Harvey, in recognition of and appreciation for outstanding support of the College's Endowment Programs. He also received the National Citizen's Award from the Hon'ble Mr. H.D. Deve Gowda, the Prime Minister of India.


On July 8, 2007, the Los Angeles Times ran a news story that alleged that the policies of Prime HealthCare Services, Inc. resulted in higher than average profits at the possible cost of patient care. According to the Times story, "When Reddy's company, Prime Healthcare Services Inc., takes over a hospital, it typically cancels insurance contracts, allowing the hospital to collect steeply higher reimbursements. It has suspended services — such as chemotherapy treatments, mental health care and birthing centers — that patients need but aren't lucrative.... On four occasions since 2002, inspectors have found that Prime Healthcare facilities failed to meet minimum federal safety standards, placing their Medicare funding at risk."[11]

In 2005, two former nurses at Desert Valley Hospital won a lawsuit in which they claimed they were improperly fired after they accused hospital management of providing inadequate care to save money and Reddy of repeatedly reporting to work while under the influence of alcohol. In February 1999, Reddy was arrested for allegedly attacking Harry Lifschutz at Desert Valley Medical Group. Reddy jumped over a desk in the doctor's waiting room and allegedly attempted to choke him and take a laptop from Lifschutz's office.[12]

Prime Healthcare Services is understood by the United States Department of Health and Human Services and the California Department of Justice about concerns over a reported spike in septicemia. The investigation centers around whether the spike in septicemia represents a large public health issue or potential Medicare fraud. Six Prime hospitals ranked in the 99th percentile of U.S. hospitals for septicemia and five were in the 95th percentile.[13]


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