Firm Secures $65M Settlement for Medicare Overbilling Allegations

Money and Healthcare Form

Prime Healthcare Services, one of the nation’s largest hospital systems, agreed Friday to pay $65 million to settle allegations of Medicare overbilling in California.   

The company and CEO Prem Reddy agreed to settle a whistleblower lawsuit alleging that 14 of its hospitals unnecessarily admitted patients and also “upcoded” patient diagnoses, exaggerating their illnesses in order to receive more Medicare money. 

Larson O’Brien partner Stephen G. Larson and associate Erica Graves served as co-counsel to the¬†qui tam¬†relator Karin Berntsen, a registered nurse who alleged Prime violated the False Claims Act.

Read the full press release from the U.S. Attorney’s Office for the Central District of California regarding the settlement here.


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