{"id":115954,"date":"2021-03-09T22:44:48","date_gmt":"2021-03-10T06:44:48","guid":{"rendered":"http:\/\/69.46.6.243\/?p=115954"},"modified":"2021-03-09T22:44:48","modified_gmt":"2021-03-10T06:44:48","slug":"ag-becerra-secures-preliminary-approval-of-settlement-with-sutter-health-resolving-allegations-of-anti-competitive-practices","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=115954","title":{"rendered":"AG Becerra Secures Preliminary Approval of Settlement with Sutter Health Resolving Allegations of Anti-Competitive Practices"},"content":{"rendered":"

Sacramento, CA…California Attorney General Xavier Becerra today applauded Judge Massullo\u2019s\u00a0preliminary approval of the groundbreaking settlement reached with Sutter Health (Sutter) in December 2019. The settlement\u00a0agreement\u00a0resolves allegations by the Attorney General, the United\u00a0Food and Commercial Workers International Union and Employers Benefit Trust\u00a0(UEBT),\u00a0and class action plaintiffs,\u00a0that Sutter\u2019s anticompetitive practices led to higher healthcare costs for consumers in Northern California compared to other places in the state.\u00a0The\u00a0settlement requires\u00a0Sutter to pay $575 million in compensation,\u00a0prohibits anticompetitive conduct, and requires Sutter to follow certain practices\u00a0to restore competition in California\u2019s healthcare markets.\u00a0Today’s preliminary approval\u00a0is a big\u00a0step towards getting this settlement in place so it can\u00a0start helping Californians.<\/p>\n

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\u201cToday\u2019s settlement represents a huge step toward making healthcare more accessible and affordable for patients who need it, especially for Northern California patients served by Sutter,\u201d\u00a0said Attorney General Becerra.\u00a0<\/b>\u201cThis landmark settlement will require Sutter to stop practices that drive patients into more expensive health services and to operate with more transparency. The California Department of Justice will continue to work to keep the healthcare market competitive so that patients, families, and employers aren\u2019t left holding the bag when big players\u00a0dominate the market.\u201d<\/p>\n

This settlement is the result of litigation that began in 2014\u00a0when the\u00a0UEBT\u00a0and numerous individual plaintiffs \u2014 later consolidated into a class action \u2014 filed their lawsuit challenging Sutter\u2019s practices in rendering services and setting prices. They sought compensation for what they alleged were unlawful,\u00a0anticompetitive business practices, which caused them to pay more than necessary for healthcare services and products. In March of 2018,\u00a0Attorney General Becerra filed a similar lawsuit against Sutter<\/a>\u00a0on behalf of the people of California, principally seeking injunctive relief to compel Sutter to correct its anticompetitive business practices moving forward.\u00a0The separate lawsuits were combined by the court into one case. In October of 2019, on the eve of trial, the parties reached an agreement to settle. The settlement was filed with the court on December 19, 2019, together with an unopposed motion for its preliminary approval.\u00a0Today\u2019s ruling grants\u00a0preliminary approval and following the required\u00a0class notice period,\u00a0sets\u00a0a hearing date\u00a0for final approval.<\/p>\n

With today\u2019s approval of the settlement, Sutter is required to:<\/p>\n