Desert Valley Hospital Founder Converts Non-Profit Hospitals To For Profit Medical Centers- Jerry Brown Office Decides On Change

Desert Valley Hospital Founder Converts Non-Profit Hospitals To For Profit Medical Centers - Jerry Brown Office Decides On Changes


(Best Syndication) Founder of our local Desert Valley Hospital, Prem Reddy has been buying hospitals in California the past couple years and is now being criticized for putting profits ahead of patient care. The 58 year old cardiologist flies his new $1.4-million helicopter from his Apple Valley home to Orange County and other facilities in Sherman Oaks, Huntington Beach and San Diego.

A recent report in the Los Angeles Times has put a blemish on this self proclaimed philanthropist. According to the report on July 8th, Reddy’s company, Prime Healthcare Services Inc, has purchased nonprofit entities, and with the approval of California Attorney General Jerry Brown, switched the facilities to a for-profit status.

Jerry Brown is the person who must approve the status change. Questions were raised after it was reported that Reddy contributed $100,000 to the Oakland Military Institute, a public charter school serving low-income youth that was founded by Brown. Reddy admits that he is trying to raise another $500,000 for the gymnasium there.

A spokesman for California Common Cause said that Brown did not have to disclose the donation under law but should have. Ned Wigglesworth said "It smells bad. Obviously, at a minimum, it raises the appearance the donor got something in exchange for his financial contribution."

The Associated Press reports that Doctor Reddy has made a fortune buying hospitals and then cancelling the private insurance contracts so they can collect higher reimbursements.

Reddy believes that health care is a commodity just like tomatoes. “Why is it in health care we expect to have the same?” he told the Times. “It’s an entitlement mentality. Why aren’t the same people asking why everybody shouldn’t be eating the same foods, or have the same clothes or same homes? Those are as essential services as health care.”

Prime Healthcare Services mostly deals with insurers to pay the patient’s entire bill. According to the AP report, Reddy also discourages doctors from giving patients treatment they can’t afford, such as pacemakers and knee replacements.

Reddy is worth more than $300 million and is reported to control Chino Valley Medical Center in Chino, Montclair Hospital Medical Center in Montclair, Sherman Oaks Hospital and the Grossman Burn Center in Sherman Oaks, Huntington Beach Hospital in Huntington Beach, La Palma Intercommunity Hospital in La Palma, West Anaheim Medical Center in Anaheim and Paradise Valley Hospital in National City.

The Times report adds that the Attorney General is expected to rule this week on Prime Healthcare's request for a change in tax status for Anaheim Memorial Medical Center, which the company recently agreed to buy.

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By Dan Wilson
Best Syndication News Writer



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