The lawsuit that began September 23 alleges Sutter Health gobbled up competing medical providers in the region and used its market dominance to set higher prices for insurance plans.
Becerra points to a 2018 study that found unadjusted inpatient procedure prices are 70% higher in Northern California than Southern California. The lawsuit notes Sutter Health’s assets were $15.6 billion at the end of 2016, up from $6.4 billion in 2005.
Health plans in this case are asking for $900 million in damages, meaning Sutter Health could take a nearly $3 billion hit.