Large California health system settles antitrust suit ahead of trial

Sutter Health, Northern California’s largest health system, yesterday settled an antitrust lawsuit just before the trial was scheduled to begin. Opening arguments for the trial were scheduled for last week but were postponed to this week over a shortage of jurors. A 2014 lawsuit filed by 1,500 California companies — and later joined by state Attorney General Xavier Becerra — alleged that the Sacramento-based health giant used its market share to inflate health services prices. The company was also accused of requiring employers and insurers to either sign with all of Sutter’s facilities or none of them, a tactic the plaintiffs say was intended to prevent negotiating lower prices at individual hospitals. The terms of the settlement are confidential, and preliminary hearings about the agreement will likely take place in February, according to the judge overseeing the case.