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U.S. NEWS Thursday 17 OcTOber 2019

Sutter Health, California settle

massive antitrust case

SAN FRANCISCO (AP) — has pursued numerous an- are to blame for pushing
One of California's larg- ticompetitive practices as up costs.
est hospital systems has it snuffed out competition Becerra's office sought in-
reached an agreement to and became the largest junctive relief to halt Sutter's
settle a massive class-ac- hospital system in North- alleged anti-competitive
tion lawsuit over allegations ern California. The lawsuit behavior, not monetary
that it abused its market points to research show- damages. But the private
power and has been over- ing that health care costs litigation brought by a class
charging patients for medi- in Northern California are of about 1,400 self-funded In this Sept. 20, 2019, file photo, an American flag flutters in the
cal bills. higher than elsewhere in employers sought dam- breeze outside of the Sutter Medical Center in Sacramento, Ca-
Wednesday's announce- the state and said Sutter ages that could exceed $1 lif.
ment of an agreement of- was largely to blame for billion. Associated Press
fered no details but came the higher costs. News of the settlement was
just in time to avoid a trial, At issue are several of Sutter applauded by health care nia. "All health care provid- Health's predatory tactics
with attorneys preparing to Health's contracting poli- consumer advocacy coali- ers will think twice, know- may come with the possi-
give opening statements cies that Becerra says have tion Health Access Califor- ing that adopting Sutter bility of legal action."q
Thursday. allowed the company to
The antitrust lawsuit against "thoroughly immunize itself
Sutter Health, which oper- from price competition."
ates 24 hospitals with 5,500 One way insurance com-
doctors across Northern panies keep costs down is
California, was first brought to steer patients to cheap-
by employers and unions er health care providers
in 2014 and later joined by through a variety of in-
California's attorney gen- centives. Becerra says Sut-
eral, Xavier Becerra, who ter Health bans insurance
filed a similar lawsuit last companies from using
year after a six-year inves- these incentives, making it
tigation. harder for patients to use
Jennifer Molina, a spokes- their lower-priced competi-
woman for Becerra, con- tors.
firmed the settlement but Becerra also says Sutter
said she could not com- has an "all or nothing" ap-
ment further until the court proach to negotiating with
approves the agreement. insurance companies, re-
San Francisco Superior quiring them to include all
Court Judge Anne-Chris- the company's hospitals
tine Massullo set a timeline in their provider networks
February or March for the even if it doesn't make fi-
next round of hearings to nancial sense to do so.
approve the settlement, a The complaint noted that
court spokesman said. Sutter's assets rose to $15.6
Sutter Health spokeswom- billion in 2016 from $6.4 bil-
an Amy Thoma Tan also lion in 2005.
confirmed "the parties Sutter Health, a Sacramen-
have reached a settlement to-based nonprofit, denies
agreement to resolve the the claims, saying it faces
case" but gave no other fierce competition across
details. the San Francisco Bay Area
In a 49-page complaint, and the Sacramento Valley
Becerra alleged that Sutter and insurance companies