Facing Accusations in CA, Hospital Company Looks to TX

A California hospital company facing allegations it inflated disease diagnoses to bill Medicare for more expensive conditions — including a form of Third World malnutrition rarely found in the U.S. — is edging into Texas.

Despite more than a year of bad press and an apparent FBI inquiry, Prime Healthcare Services, which owns and operates more than a dozen hospitals, most of them in California, acquired ownership of South Texas’ 112-bed Harlingen Medical Center in December, then bought Pampa Regional Medical Center, a 115-bed hospital in the Panhandle, this month. Prime spokesman Edward Barrera said in a statement that the allegations ...

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