A physician builds a hospital empire in California, and gives the finger to insurance companies. A business model of the future?

What is more extraordinary is how Reddy is building his empire. Modern healthcare is largely based on the model in which insurers seek to control costs by paying fixed amounts to doctors and hospitals. Reddy is tearing that down.

When Reddy’s company, Prime Healthcare Services Inc., takes over a hospital, it typically cancels insurance contracts, allowing the hospital to collect steeply higher reimbursements. It has suspended services “” such as chemotherapy treatments, mental health care and birthing centers “” that patients need but aren’t lucrative.

(via a reader tip)