People of the State of California ex rel. Xavier Becerra v. Sutter HealthDate Filed: March 29, 2018
District Court: Superior Court of California, County of San Francisco – Case No. CGC-18-565398, consolidated with CGC-14-538451 (lead case)
Nature of Suit: Antitrust
Defendant Type: Provider
Plaintiff Type: State
On March 29, 2018, California’s attorney general filed an antitrust and unfair competition lawsuit against Sutter Health alleging that Sutter engaged in “all-or-nothing” contracts with health insurers that restricted insurers from providing low-cost plan options to Californians, set excessively high out-of-network prices, and restricted price transparency of providers. This action was filed after Sutter Health made headlines in November 2017 upon discovery that it intentionally destroyed 192 boxes of documents in a private antitrust class action brought in April 2014 by California employers and labor unions on the same facts as the state action. The California Superior Court has consolidated the case with the class action lawsuit UEBT v. Sutter Health, which was filed on April 7, 2014. In that case, employers and labor unions accused the Northern California health system of abusing its market power charging inflated prices, in violation of California’s antitrust law.