In 2022, Sutter Health faced trial for anticompetitive conduct, but crucial details were left out during the proceedings. For example, the former finance chief revealed that the system could make an additional $200 million per year by requiring insurers to contract with all of its hospitals instead of just a select few. Additionally, the former CEO mentioned that they forced health plans to pay more.
The judge overseeing the trial made an error by not allowing this evidence to be presented, according to a U.S. appeals court ruling issued on Tuesday. The Ninth Circuit panel overturned Sutter’s victory in the class-action case, claiming that Sutter used its market power to increase health care costs by over $400 million in the region. As a result of Tuesday’s decision, the case is likely to proceed to a second trial.
Lead counsel for the plaintiffs, Matthew Cantor, stated that the appellate court found that the jury was influenced, leading to the verdict being discarded. This ruling sheds light on the need for a fair and just trial process to ensure that all relevant evidence is considered before reaching a conclusion.
