PHS then acquired Chino Valley Medical Center, a 126 bed acute care hospital in Chino, CA in 2004. The hospital was in bankruptcy and was purchased through the US Bankruptcy Court. PHS was able to not only pull the hospital out of bankruptcy within a year, but also transformed the hospital into a successful entity. Similarly, PHS acquired eleven other financially distressed acute care facilities to help continue essential critical healthcare access to the communities of Southern California, including 370-bed Centinela Hospital Medical Center, 246-bed Shasta Regional Medical Center in Redding, 153-bed Sherman Oaks Hospital and the world renowned Grossman Burn Center, 151-bed Encino Hospital Medical Center and 93-bed San Dimas Community Hospital in Los Angeles region; 102-bed Montclair Hospital Medical Center in Inland Empire region; 167-bed Garden Grove Hospital and Medical Center, 141-bed Huntington Beach Hospital, 131-bed La Palma Intercommunity Hospital and 219-bed West Anaheim Medical Center in Orange County region; and, 104-year old 301-bed Paradise Valley Hospital in San Diego region.

Throughout his career, Dr. Reddy has been committed to serving the communities in which he works. In 1989, he established the Dr. Prem Reddy Family Foundation, a 501(c)(3) not-for-profit charitable organization with an initial gift of $1million. Since that time, he has contributed over $20 million dollars to the Foundation. The Dr. Prem Reddy Family Foundation serves the health care needs of the High Desert communities in many ways, including a free public health library, a scholarship program for students in the health care field, and the support of other health care related charities.

Dr. Reddy is an active philanthropist, contributing to numerous charitable causes. He greatly values education and has donated extensively to providing opportunity for education within the health care field. He sponsors hundreds of scholarship grants to students interested in the health care field. His charity and generous contributions have often been recognized and awarded. The Victor Valley Community College named their student health clinic, “Dr. Prem Reddy Student and Staff Health Center” and its allied health program, the “Dr. Prem Reddy School of Health Sciences,” in honor of his $1 million donation to the program. The Western University of Health Science in Pomona, California, named its largest lecture hall the “Dr. Prem Reddy Lecture Hall,” in honor of his many contributions to education in the health care field.

Dr. Reddy has contributed not only to education, but also to various social service causes. He has been honored with many prestigious awards for his commitment to social service. His many awards include: Entrepreneur of the Year, given by the Ernst & Young Accounting Company, Inc. Magazine and Merrill Lynch Financial Company (1994); Republican of the Year Award, awarded by the San Bernardino County, Republican Central Committee (1995); Victor Valley College Foundation Distinguished Service Award (1996) and Member of the Order of William Harvey, awarded by the American College of Cardiology. The Inland Empire Leaders of Distinction honored Dr. Reddy with the “Life Time Achievement Award” (2003). Dr. Reddy is the recipient of several honors from the American Heart Association for his exceptional contributions, including the “Friend with a Heart” (1996) and the “Honoree of the Year” (2004) awards. The Boy Scouts of America, Inland Empire Council, recognized Dr. Reddy as the “Distinguished Citizen of the Year” (2005). The Circle of Care Foundation and Children's Burn Foundation of Sherman Oaks, CA, honored Dr. Reddy for his contribution of $1 million (2006). Dr. Prem Reddy was recognized as the Nation’s “The 50 most powerful physician executives in healthcare” and “The top 25 minority executives in healthcare” by Modern Healthcare magazine for the year 2008. Dr. Reddy has made remarkable contributions to charity and has attempted to give back to the communities and causes he serves.