Reddy said his company's approach allowed it to be more efficient than its rivals, and he remained unapologetic to those who said the company was too focused on the bottom line. Patients, he said, may simply deserve only the amount of care they can afford.
"Why is it in healthcare we expect to have the same?" he asked. "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 healthcare."
Critics say Reddy-owned hospitals routinely turn away uninsured patients, an allegation the company denies.
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.
"Somewhere along the line, the insurance industry has gone bad," he said. "They want to pay $1,100 a day for patients that cost $1,700 to treat. They are bilking the system and getting rich at everyone else's expense."
Free of most contracts, Prime Healthcare's hospitals can collect the patient's entire bill, calculated at the higher rate, whether the patient has insurance or not. And, under state law, insurers must pay up.
At Desert Valley, for example, the hospital collected about $4,100 per patient per day in 2002, according to state data. In 2005, it took in about $10,000 per patient per day."
More than a dozen current and former medical staffers and administrators interviewed by The Times said they were concerned that the company's business practices were putting patients in jeopardy. Many declined to talk on the record for fear of losing their job or being sued.
Experts say Prime Healthcare's unusual business model reduces patient access to services, significantly raises costs and, as the company grows, could destabilize California's healthcare system. source: Los Angeles Times
2 comments:
The article is a sensationalistic piece. The statement, "Patients, [Dr. Prem Reddy] said, may simply deserve only the amount of care they can afford," is appalling and goes against all of my beliefs. As a dedicated physician for over 30 years, I have committed my life to patient service and providing the highest quality of care to any and all patients. I believe medical care is a basic human right, and we have an obligation to provide the best possible care in every situation.
Compassionate patient care for all is the foundation of Prime Healthcare Services and its hospitals. In fact, Prime Healthcare Services' hospitals see more uninsured patients and provide more charity care than most other for-profit and not-for-profit hospitals. They have received numerous national awards for outstanding patient care and community service. Prime Healthcare Services and I will continue to serve our communities and stay committed to providing the highest quality of compassionate care to all patients.
It is true that reporters often misrepresent the facts. It's also true that special interests put a spin on news stories. My interest is limited to learning about problems hospital face and ways these problems are managed. Your quarrel is with the reporter, Daniel Costello, staff writer with the LA Times and I suggest that you write him directly to have him correct any errors he made in his article. If this is a case of slander he should be held accountable.
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