Settlement Agreement Reached Between UEBT, California Attorney General, and Sutter Health
$575 million settlement agreement includes injunctive relief that will ensure Sutter competes on price and quality.
San Francisco, Calif. | December 20, 2019 – Kellogg Hansen is seeking preliminary approval of a landmark class-action settlement reached with Sutter Health, the largest health care system in Northern California. The $575 million settlement resolves claims brought by UFCW & Employers Benefit Trust (UEBT) on behalf of a certified class of direct purchasers of hospital services, as well as the Attorney General of California. The agreement also provides injunctive relief, under the supervision of a court-appointed monitor, designed to limit Sutter’s charges for out-of-network services and to prevent Sutter from leveraging its market power in contract negotiations regarding provider networks.
In a statement about the settlement, UEBT Board Chair Jacques Loveall said: “From the outset, our goal has been to not only achieve justice for the members of the class, but to also put an end to the anticompetitive behavior that has allowed Sutter to charge inflated prices. Today, we are asking the Court to approve a settlement that delivers on both of these goals.” UEBT’s full statement is available here.
The parties reached the settlement on the eve of trial. Daniel Bird led the Kellogg Hansen trial team, which included Aaron Panner, Kenneth Fetterman, Linda Elliott, Jacob Hartman, and Albert Pak. Kellogg Hansen is joined by co-counsel Pillsbury & Coleman, LLP; Farella Braun + Martel LLP; Cohen Milstein Sellers & Toll PLLC; and McCracken, Stemerman & Holsberry, LLP.
Case caption: UFCW & Employers Benefit Trust, on behalf of itself and all others similarly situated, v. Sutter Health, et al., Case No. CGC-14-538451, pending in the San Francisco Superior Court.
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