Dr. Reddy and his family founded the Dr. Prem Reddy Family Foundation, previously known as the Desert Valley Charitable Foundation, in 1986. It is a nonprofit foundation that has donated millions to various charities, including those that support health education, college scholarships, public healthcare education, and free community clinics. Additionally, the Prime Healthcare Foundation was founded in 2006 and funded by Dr. Reddy and his family. The Prime Healthcare Foundation owns fifteen non-profit acute care hospitals in California, Texas, Ohio, Georgia, Pennsylvania, and Rhode Island, which are considered community assets. Both foundations have combined assets of over $800 million.

In the United States, the Foundations assist patients unable to afford treatment by funding free clinics and organizations supporting preventative care. The Foundations also seek to ensure that students of all backgrounds can pursue careers in medicine. Internationally, the Foundations promote and support programs that improve quality of life, which includes providing free medical care and supplies, potable water, new schools and safe, clean housing.