Prem Reddy was personally liable in a negotiated settlement regarding False Claims at 14 Prime Hospitals.<ref name="fca">{{cite web|url=https://www.justice.gov/opa/pr/prime-healthcare-services-and-ceo-pay-65-million-settle-false-claims-act-allegations|date=3 August 2018|work=U.S. Dept. of Justice|access-date=29 August 2018|title=Prime Healthcare Services and CEO to Pay $65 Million to Settle False Claims Act Allegations}}</ref> Out of the $65 million settlement, he had to pay $3.25 million.<ref name="fca" />
In July 20192021 US Department of Justice announce another settlement with Prime Health Care and Prem Reddy concerning kickbacks, overcharging for medical implants, and billing for a non-eligible provider by using another provider's billing identity. The violations directly implicated Dr. Reddy in the kickbacks. Dr. Reddy paid $1,775,000; and Prime paid $33,725,000.<ref>{{cite web |title=Prime Healthcare Services and Two Doctors Agree to Pay $37.5 Million to Settle Allegations of Kickbacks, Billing for a Suspended Doctor, and False Claims for Implantable Medical Hardware |url=https://www.justice.gov/opa/pr/prime-healthcare-services-and-two-doctors-agree-pay-375-million-settle-allegations-kickbacks |website=U.S. Department of Justice |access-date=20 July 2021 |language=en |date=19 July 2021 |archive-date=19 July 2021 |archive-url=https://web.archive.org/web/20210719213425/https://www.justice.gov/opa/pr/prime-healthcare-services-and-two-doctors-agree-pay-375-million-settle-allegations-kickbacks |url-status=live }}</ref>
