Jury: California health system did not abuse market power
ABC News
A federal jury ruled that a large Northern California health system did not abuse its market power to drive up costs for consumers and businesses
SACRAMENTO, Calif. -- A federal jury on Friday rejected allegations that a large Northern California health system abused its market power to drive up costs for consumers and businesses.
The verdict followed a monthlong civil trial in a class-action lawsuit against Sutter Health on behalf of more than 3 million employers and people served by the Sacramento-based nonprofit system.
The plaintiffs argued unsuccessfully that the company caused nearly $400 million in insurance premium overcharges between 2011-2017 and sought triple damages, as much as $1.2 billion.
Attorneys who brought the antitrust lawsuit said Sutter Health, which operates 24 hospitals with more than 12,000 doctors and 16,000 nurses, struck deals with major insurance companies that discouraged patients from using lower-cost insurance and lower-cost hospitals.
