California Attorney General Xavier Becerra filed a lawsuit against Sutter Health to stop its anticompetitive business practices.
The attorney general filed the case against Sutter Health, the largest hospital system in Northern California on Thursday.
In the lawsuit, Attorney General Becerra alleged that Sutter Health is causing healthcare costs more expensive for Northern Californians because of its anticompetitive practices.
According to AG Becerra, Sutter Health intentionally and successfully acquired market power in certain local markets in Northern California. The healthcare giant took advantage of its market power through its anticompetitive practices. It prevented insurers from using steering and tiering to counter its excessive pricing.
Sutter Health owns at least 24 hospitals across Norther California including Alta Bates Summit Medical Center and Eden Medical Center.
Sutter Health allegedly violated the Cartwright Act
AG Becerra argued that since 2002, Sutter Health compelled all or almost all Network Vendors operating in Northern California to enter into unduly restrictive and anticompetitive contracts.
