Opening arguments in a landmark antitrust case against Sutter Health, Northern California’s largest health care system, are poised to begin Thursday, October 9, reported the San Francisco Chronicle.
At the heart of the lawsuit—filed in 2014 by a group of self-funded employers and joined by California Attorney General Xavier Becerra in 2018—are allegations that Sutter abused its market power to raise prices for employers and insurers.
The lawsuits, which were consolidated for purposes of a trial in San Francisco Superior Court, accuse the Sacramento nonprofit of engaging in contracting practices with health insurers and employers that prevented them from offering patients lower-cost options. One central claim is that Sutter imposed what’s known as “all or nothing” contracting terms, compelling insurers and employers to contract with all Sutter hospitals, or none at all. This practice prevents insurers and employers from negotiating with individual hospitals on prices.
“There is robust competition in Northern California, and Sutter Health looks forward to demonstrating in court why its integrated care model promotes competition and, most importantly, benefits patients and communities,” Sutter spokeswoman Amy Thoma Tan said in a statement.
The case is one of the first antitrust suits brought by a state attorney general against a major health care provider, and it comes amid growing frustration among patients over the rising cost of health care.
Full Content: San Francisco Chronicle
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FCC Votes to Restore Net Neutrality Rules
Apr 25, 2024 by
nhoch@pymnts.com
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Chamber of Commerce Sues to Overturn FTC Noncompete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI