Sutter Health Settles Closely Watched Lawsuit With California Over Allegations Of Anti-Competitive Behavior
The class-action lawsuit accused Sutter Health of using its dominance in the region to corral insurers so that patients could not go elsewhere for less expensive or higher quality care. Health care costs in Northern California, where Sutter is dominant, are 20% to 30% higher than in Southern California.
The Associated Press:
Sutter Health, California Settle Massive Antitrust Case
One of California's largest hospital systems has reached an agreement to settle a massive class-action lawsuit over allegations that it abused its market power and has been overcharging patients for medical bills. Wednesday's announcement of an agreement offered no details but came just in time to avoid a trial, with attorneys preparing to give opening statements Thursday. (Gecker, 10/16)
San Francisco Chronicle:
Sutter Health, California Settle Antitrust Case Just Before Start Of Trial
The details of the settlement are confidential. Court hearings for preliminary approval of the agreement will likely take place in February or March, said San Francisco Superior Judge Anne-Christine Massullo, who is overseeing the case. (Ho, 10/16)
California Healthline:
Surprise Settlement In Sutter Health Antitrust Case
There were audible cheers from the jury following the announcement that the trial, which was expected to last three months, would not continue. Officials with the attorney general’s office and Sutter Health declined requests for comment. (Gold, 10/16)
The New York Times:
Sutter Health To Settle Antitrust Lawsuit
Sutter had long been viewed as a classic example of a hospital system that grew too big, leading to higher prices in the region. While hospital care for a heart attack costs around $25,000 in San Francisco, for example, the price is closer to $15,000 in parts of Los Angeles. Sutter denied that it engaged in any activities that harmed competition in the region. (Abelson, 10/16)
Politico:
Sutter Health Reaches Settlement With California, Union Before Antitrust Trial
The settlement would resolve a lawsuit filed in 2014 by a trust that pays health care costs on behalf of the United Food and Commercial Workers union and self-funded employers, as well as a separate suit filed in 2018 by Attorney General Xavier Becerra. The case became a symbol of concern over big hospital chains that require insurers to access their networks on an all-or-nothing basis and make it harder for plans to steer patients to lower-cost competitors. (Colliver, 10/16)
Modern Healthcare:
Sutter Health Settles Class Action Antitrust Lawsuit
Jonathan Grossman, an antitrust attorney with Cozen O'Conner who isn't involved in the lawsuit, said he expects the settlement in this case will likely include a relatively small amount in damages in exchange for Sutter's commitment to end the practices that were the subject of the litigation. The downside of a settlement is that it does not offer a legal precedent on hospital or insurer practices like a trial would, Grossman said. (Bannow, 10/16)
Sacramento Bee:
California DOJ, Sutter Reach Settlement In Antitrust Trial
Consumer advocate Anthony Wright, leader of Health Access California, welcomed the news that remedies or relief might be coming soon for consumers in the north state. “This is a lawsuit that has been watched by hospital chains nationally, and I think it will make health care providers think twice about some of these anti-competitive practices,” Wright said. “Obviously, a lot depends on the details of the settlement, which we won’t know for many months, I believe, but even just the fact that the lawsuit was brought by Attorney General Becerra, by the union and business plaintiffs, that sends a really important signal not just to Sutter but nationwide to the health care industry.” (Anderson, 10/16)
