Lawmakers probe Prime Healthcare Services' billing practices

Controversial medical and billing practices by hospital chain Prime Healthcare Services came under scrutiny at a hearing before California lawmakers one day after the company's chief executive abruptly resigned. California Sen. Ed Hernandez (D-West Covina), chairman of the Senate health committee, said he called the hearing Friday in Los Angeles after hearing criticism that Prime Healthcare was overbilling for medical care and refusing to transfer stabilized patients to hospitals in their insurance network to drive up revenue. Michael Sarrao, vice president and general counsel at Prime Healthcare, defended the company's practices and complained that unions negotiating with the Ontario-based company were trying to build political pressure against it.