A federal jury recently found in favor of Northern California health system Sutter Health over allegations that it abused its market power to increase costs for consumers as well as businesses.
The verdict followed a monthlong civil trial in a class-action lawsuit on behalf of more than 3 million businesses and individuals served by the Sacramento-based nonprofit system.
"The plaintiffs and the class firmly believe that Sutter's actions violated law," attorney Matthew Cantor told the Northern California Record. "In our view the evidence demonstrated that Sutter's conduct raised premiums for millions in Northern California. We are currently evaluating our next steps."
Conversely, Sutter Health praised the verdict.
“We are extremely pleased with (the March 11) unanimous verdict in Sutter Health’s favor," a statement from Sutter Health read. "After hearing many hours of testimony from witnesses, insurance plan representatives, provider organizations and experts, the jury found that Sutter Health did not engage in anticompetitive conduct and did not cause consumers to pay higher prices or premiums as plaintiffs alleged."
The plaintiffs argued unsuccessfully that the company created almost $400 million in insurance premium overcharges between 2011-2017, having sought triple damages, which would add up to as much as $1.2 billion.
Sutter Health owns 24 hospitals with a combined 12,000 doctors and 16,000 nurses, according to a report from ABC News. Sutter has previously faced similar lawsuits but settled out of court in those instances.