Its agreements included Anti-Incentive, Price Secrecy, and All-or-Nothing terms. Therefore, the healthcare giant managed to establish and maintain its market power to control prices and remove competition.
AG Becerra said Sutter Health of violated the Cartwright Act and California Bus. & Prof. Code §16720. According to him, the healthcare giant “unlawfully controls, fixes, and tampers with prices” through its agreement terms. It is also engaged in anticompetitive conduct by imposing unreasonable restraint of trade and commerce.
In a statement, AG Becerra said Sutter Health is risking the lives of Californians through its illegal and anticompetitive pricing.
Additionally, the attorney general stressed, “Big business should not be able to throttle competition at the expense of patients.”
In response, Sutter Health said it is reviewing the lawsuit filed by the attorney general. The healthcare giant also stated that since 2012, it held average overall rate increases to health plans at low single digits.
