That's nonsense. Vault City does extend special privileges to citizens, but only because they're better qualified to enjoy those things than brutish non-citizens. Besides, everyone can qualify for Vault City citizenship if they pass the tests.
Called Painless by the townsfolk of Redding, Johnson is a thin, nervous man that is the primary physician of the town. Apart from medical care, he took it upon himself to process Jet shipments into user ampules, so that the miners can remain relatively healthy and able to work - something he claims would not be possible if some quack with rusty equipment would do that. He also offers advanced surgical procedures, including even armor implants - the Phoenix Armor Implants, Dermal Impact Armor and their respective upgrades.
He is a staunch supporter of Vault City, turning a blind eye to the obvious mistreatment of non-citizens within its walls. If given the Jet antidote, Johnson would distribute it to miners and eventually be elected mayor of Redding, swiftly entering an alliance with Vault City.