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The Prime Story

The seeds of Prime Healthcare’s success were first sown in the High Desert region of Southern California where Dr. Prem Reddy began practicing medicine in the 1980s. It was there Dr. Reddy built Prime Healthcare’s flagship facility, Desert Valley Hospital, to serve the community. Desert Valley Hospital has been recognized as a Top 100 Hospital in the nation six times.

Desert Valley Hospital was sold to another corporation for a few years, and immediately began faltering. In 2001, Dr. Reddy formed Prime Healthcare Services to re-purchase the hospital, rescuing it from bankruptcy and setting the standard for quality healthcare that continues throughout the hospital network to this day. Prime Healthcare’s motto is “Saving Hospitals, Saving Jobs, Saving Lives” which the company continues to do as it grows.

From the lessons learned during the transformation of Desert Valley Hospital, Prime Healthcare’s model was established and now leads to the rescue and transformation of financially struggling community hospitals across the country. Prime Heathcare is nationally recognized for award-winning quality care and has been named a Top 10 and Top 15 Health Systemby Fortune/IBM Watson Health. Its hospitals have also been named among the nation’s best as ”100 Top hospitals” 58 times by Fortune/IBM Watson Health and have received more Patient Safety Excellence Awards from Healthgrades than any other health system for seven consecutive years (2016-2022).

Three years after the formation of Prime Healthcare, the company purchased the second hospital in the family, Chino Valley Medical Center, when Dr. Reddy was asked to save the hospital from bankruptcy. Growth continued throughout the early 2000s, and in recent years has increased pace as the shifting healthcare landscape endangered more and more small community hospitals, threatening to close them without financial support. To date, Prime has invested more than $1.7 billion in capital improvements for its hospitals since 2005.

PHS PHSF Hospitals JUN2021

  • Desert Valley Hospital CA
  • Chino Valley Medical Center CA
  • Sherman Oaks Hospital CA
    Montclair Hospital Medical Center CA
    Huntington Beach Hospital CA
    La Palma Intercommunity Hospital CA
    West Anaheim Medical Center CA
  • Paradise Valley Hospital CA
    Centinela Hospital Medical Center CA
  • Encino Hospital Medical Center CA
    Garden Grove Hospital Medical Center CA
    San Dimas Community Hosptial CA
    Shasta Regional Medical Center CA
  • Donated to PHSF:
    Encino Hospital Medical Center CA
  • Alvarado Hospital Medical Center CA



    Donated to PHSF:
    Montclair Hospital Medical Center CA

  • Harlingen Medical Center TX



    Donated to PHSF:
    Sherman Oaks Hospital CA

  • Roxborough Memorial Hospital PA
    Saint Mary’s Regional Medical Center NV
    Lower Bucks Hospital PA
    Dallas Medical Center TX
    Pampa Regional Medical Center TX



    Donated to PHSF:
    Huntington Beach Hospital CA

  • Saint John’s Hosptial KS
    Providence Medical Center KS



    Donated to PHSF:
    Pampa Regional Medical Center TX

    Acquired by PHSF:
    Knapp Medical Center TX

  • Glendora Community Hospital CA
    Garden City Hospital MI
    St. Mary’s General Hospital NJ
    Landmark Medical Center RI
    Rehabilitation Hospital of Rhode Island RI



    Donated to PHSF:
    La Palma Intercommunity Hospital CA

  • St Joseph’s Medical Center MO
    St. Mary’s Medical Center MO
    Riverview Regional Medical Center AL
    North Vista Hospital NV
    Dallas Regional Medical Center TX
    Lake Huron Medical Center MI
    Saint Clare’s Health System NJ
    Monroe Hospital IN



    Donated to PHSF:
    Glendora Community Hospital CA

  • Lehigh Regional Medical Center FL
    Saint Michael’s Medical Center NJ



    Acquired by PHSF:
    Southern Regional Medical Center GA
    Suburban Community Hospital PA
    East Liverpool City Hospital OH
    Coshocton Regional Medical Center OH

  • Acquired by PHSF:
    Mission Regional Medical Center TX
  • Donated to PHSF:
    Landmark Medical Center RI
    Rehabilitation Hospital of Rhode Island RI
  • St. Francis Medical Center CA

Prime Healthcare has expanded to 45 hospitals in 14 states across the country. Every hospital acquired in financial distress has been transformed and are now vital community assets. Our experienced turnaround team has a record of success in finding operational efficiencies and minimizing bureaucracy to create an efficient healthcare delivery model. Our decentralized structure allows local leadership to make the right choices for their community, while benefiting from corporate guidance and support.

A Brief Timeline of Prime Healthcare


Dr. Reddy builds Desert Valley Hospital, an 83-bed acute care hospital in Victorville, California


Dr. Reddy founds Prime Healthcare Services, Inc. to repurchase Desert Valley Hospital, which had been sold to another group


Prime Healthcare acquires its second hospital, Chino Valley Medical Center in California


Prime Healthcare earns “10 Top Health Systems” by Truven


Prime Healthcare completes first acquisition outside California with Harlingen Medical Center in Texas


Prime Healthcare acquires St. Francis Medical Center in California