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Southern California Hospital System Sues Kaiser Permanente for Managing Bills Rather Than Managing Care
Date:2/13/2008

ts. In contrast to Kaiser's hospitals, Prime Healthcare's hospitals consistently provide millions of dollars in charity care every year which, in almost all cases, exceed the amount of charity care provided by other neighbor hospitals including non-profits.

Prime Healthcare has a history of acquiring financially distressed and struggling hospitals and providing the resources and expertise necessary to improve the infrastructure at these hospitals and implement proven patient care protocols which ensure the hospitals' survival and continued access to care by those community members who rely on the hospitals for care. Prime Healthcare has successfully turned around each hospital it has acquired while at the same time guaranteeing community members access to high quality medical care for years to come. Prime Healthcare's success depends not only on its resources and expertise but also on receiving proper reimbursement for the care it has rendered. Unfortunately, Kaiser refuses to properly reimburse Prime Healthcare's hospitals for the care they provide to Kaiser members. Prime Healthcare has been engaged in negotiations and mediation processes for over two years in resolving its claims' disputes with no success. Prime Healthcare's attempts to resolve the disputes through Independent Dispute Resolution Process (IDRP) as recommended by the Department of Managed Healthcare (DMHC) were thwarted as Kaiser declined to participate in the voluntary program repeatedly. Prime Healthcare's request to submit the disputes to a binding judicial arbitration procedure has also been repeatedly denied by Kaiser. Therefore, Prime Healthcare is left with no choice but to pursue the litigation henceforth.

Kaiser's behavior not only threatens the ability of Prime Healthcare to meet its mission of turning around financially struggling community hospitals but also threatens community hospitals throughout the State of California. Prime Healthcare believes that many other communit
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SOURCE Prime Healthcare Services
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