Proposed $575 Million Settlement Reached in Antitrust Lawsuit Against Sutter Health

In what is believed to be the first settlement of its kind in the country, Sutter Health has agreed to pay $575 million and be the subject of ongoing monitoring in a class action antitrust lawsuit. The action, which was brought by the California Attorney General, unions, and employers, alleged anti-competitive conduct by the large Northern California health system, and represented renewed interest in major health care providers using their market share to discourage competition.

The $575 million settlement amount will compensate unions, employers, and the California and federal governments. The settlement itself will prevent Sutter from, among other things, requiring insurers to include all of its facilities in their coverage if they want to include any of them. The settlement still needs to be approved by a California state judge, and Sutter remains subject to a federal antitrust lawsuit.

Additional Reading

Sutter Health to Pay $575 Million to Settle Antitrust Lawsuit, The New York Times, December 20, 2019

Proposed Settlement, UFCW & Employers Benefit Trust, et al. v. Sutter Health, et al., dated December 19, 2019

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