Business & Tech

CEO for New Owner of Roxborough Hospital Resigns

Prime Healthcare Services CEO resigns after California billing investigation.

Three days after Prime Healthcare Services acquired , it accepted the resignation of its CEO amid a medical billing investigation conducted by state and federal officials, several media outlets reported.

President and CEO Lex Reddy resigned Feb. 25 after 11 years in that position, according to a news release.

The hospital Feb. 22 from Solaris Healthcare for an undisclosed amount of money. Prime Healthcare said it would retain Roxborough Hospital CEO Robert G. Souaid.

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Over the past several months, investigative journalism outlet California Watch has covered Prime Healthcare's battle with unions and health insurance companies, with the latter saying the chain of hospitals "trapped" patients into paying for unnecessary care. Prime Healthcare disputes that claim, and filed the originally lawsuits against the Kaiser Health Plan and Heritage Provider Network for failure to pay.

The California state Legislature and FBI are currently investigating Prime Healthcare's patient admission process.

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To read coverage from California Watch, click here.

According to the company, Reddy will be replaced by his brother-in-law, Prime Healthcare's founder Dr. Prem Reddy, as interim CEO.

The Philadelphia Inquirer reported that the company said Reddy's resignation is unrelated to the investigation.


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