Court denies Sutter Health’s request to delay $575M settlement

This case could have nationwide implications if other states begin to examine and challenge local practices, according to Elizabeth Mitchell, CEO of Pacific Business Group on Health, which initiated the lawsuit on behalf of employers and stakeholders.

“While Sutter was something of an outlier, in terms of the scale, we believe this is something that is plaguing the entire industry,” Mitchell said.

In addition to paying $575 million to employers and union trusts to offset claimed overcharges, the settlement requires Sutter Health to end alleged anti-competitive behavior.

These practices include “all-or-nothing” contracts, surprise billing, price secrecy and the use of gag clauses, according to Mitchell.

Read the article in Healthcare Finance here.