A March 2 filing in the Northern District of California federal court said the class and Sutter “reached an agreement in principle to settle all individual and class claims” and that the plaintiffs will file a motion for preliminary approval within 45 days and request a case management conference in 90 days.” A trial in the case was set to begin March 3, according to court records.
The case was set to go to trial after a majority panel for the U.S. Court of Appeals for the Ninth Circuit reversed a 2022 jury verdict in favor of Sutter.
The lawsuit, which was initially filed in 2012, focused on Sutter’s contracts with Anthem Blue Cross, Blue Shield, Aetna, Health Net and UnitedHealthcare. The lawsuit alleged that the system used its market power to force insurers to contract with the entire Sutter system to avoid insurers being able to pick specific facilities. It also alleged Sutter forced insurers to contract for services at the health system’s more expensive hospitals to gain access to care patients needed.
The lawsuit had a certified class of around 3 million members who purchased health policies since 2011.
Terms of the settlement were not immediately available. A Sutter Health spokesperson told Becker’s on March 3 that the system did not have comment on the settlement at this time.
In 2021, Sutter paid $575 million to settle an antitrust case brought by employers and then- California Attorney General Xavier Becerra. The case revolved around allegations that Sutter violated state antitrust laws by using its market dominance in Northern California to overcharge patients and employer-funded health plans.
