Sutter to pay $575M to settle lawsuit over its alleged anti-competitive business practices

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Under the settlement, Sutter will do the following changes:

  • Limit its charges to patients for out-of-network services to ensure that they will not receive surprise medical bills
  • Increase transparency by allowing insurers, employers and self-funded payers to provide plan members with access to pricing, quality, and cost information.
  • Stop measures that deny patients access to lower-cost plans
  • End all-or-nothing contracting deals
  • Cease anticompetitive bundling of services and products
  • Cooperate with a court-approved compliance monitor to ensure its compliance with the terms of the settlement
  • Clearly set definitions on clinical integration and patient access considerations

Settlement with Sutter restores competition in the healthcare markets

In a statement, AG Becerra said, “When one healthcare provider can dominate the market, those who shoulder the cost of care — patients, employers, insurers — are the biggest losers.”

The Attorney General added, “Today’s settlement will be a game changer for restoring competition in our healthcare markets…This first-in-the-nation comprehensive settlement should send a clear message to the markets: if you’re looking to consolidate for any reason other than efficiency that delivers better quality for a lower price, think again. The California Department of Justice is prepared to protect consumers and competition, especially when it comes to healthcare.”

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