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Litigation & Arbitration,
Health Care & Hospital Law

Jul. 21, 2021

2 firms announce $37.3M settlement of medical kickback case

“It settled essentially on the eve of trial,” said Justin T. Berger, a partner with Cotchett, Pitre & McCarthy LLP in Burlingame. “Throwing inflated sums of money at doctors for their medical practices and salaries as a hidden way to get patient referrals isn’t allowed,” said Edward H. Arens, a whistleblower attorney and partner at Phillips & Cohen LLP in San Francisco,

Two California firms announced a $37.5 settlement with Prime Healthcare Services Inc., CEO Dr. Prem Reddy and a cardiologist over a fraud and kickback scheme. The state of California will receive just over $2 million, according to a Monday news release from the U.S. Department of Justice.

In 2015, Prime purchased Dr. Siva Arunasalam's surgery and cardiology business, High Desert Heart Institute (HDHI), in Victorville. Such purchase...

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