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California's attorney general sued Sutter Health, accusing the hospital giant of illegally quashing competition and for years overcharging consumers and employers.The lawsuit marked a bold move by state Attorney General Xavier Becerra against the dominant health care system in Northern California as concerns mount nationally about consolidation among hospitals, insurers and other industry middlemen."It's time to hold health care corporations accountable," Becerra said at a news conference Friday. "We seek to stop Sutter from continuing this illegal conduct."The antitrust suit, filed in San Francisco County Superior Court, asks the court to prevent Sutter from engaging in anticompetitive practices and "overcharges."It said Sutter employs a variety of improper tactics, such as gag clauses on prices, "punitively high" out-of-network charges and "all-or-nothing" contract terms that require all of its facilities to be included in insurance networks.Taken together, Sutter's actions "improperly block any and all practical efforts to foster or encourage price competition between Sutter and any rival Healthcare Providers or Hospital Systems," according to the state's complaint. "Sutter's conduct injured the general economy of Northern California and thus of the state.Sutter, which owns 24 hospitals, reported net income of 3 million last year on .4 billion in revenue. Sutter's nonprofit health system also has 35 surgery centers, 32 urgent-care clinics and more than 5,000 physicians in its network.In a statement, Sutter it was reviewing the complaint and couldn't comment on specific claims.Overall, Sutter said, "healthy competition and choice exists across Northern California" for consumers seeking medical care. It also said its charges for an inpatient stay are lower than what other nearby hospitals charge."Sutter Health is proud to save patients, government payers and health plans hundreds of millions of dollars each year by providing more efficient and integrated care," the statement said.This high-profile legal fight caught the attention of employers and policymakers across the country amid growing alarm about the financial implications of industry consolidation. Large health systems are gaining market clout and the ability to raise prices by acquiring more hospitals, outpatient surgery centers and physicians' practices.Martin Gaynor, a health care economist at Carnegie Mellon University, said California's lawsuit may portend more litigation at the state level."There are a number of markets in the U.S. that are dominated by one very large, powerful health system," Gaynor said. "It could be that we're going to see a new level of activity by state antitrust enforcers looking at competition in their own backyards."Glenn Melnick, an economist and expert on hospital finances at the University of Southern California, said if the state prevails against Sutter it could put "a chill on anticompetitive practices that are being adopted across the U.S. and that could help slow down hospital price increases. That would be good news for consumers."The complaints about Sutter's high prices and market power have persisted for years.The state said its investigation started in 2012 under Kamala Harris, California's previous attorney general and now a U.S. senator. Six years ago, her office sent subpoenas to several health systems and insurers seeking information about market concentration and its effect on medical prices.A 2016 study found that hospital prices at Sutter and Dignity Health, the two biggest hospital chains in California, were 25% higher than at other hospitals around the state. Researchers at the University of Southern California said the giant health systems used their market power to drive up prices — making the average patient admission at both chains nearly ,000 more expensive.Last week, researchers at University of California, Berkeley issued a report that examined the consolidation of the hospital, physician and health insurance markets in California from 2010 to 2016. The authors said 44 of California's 58 counties had "highly concentrated" hospital markets.After the report was issued Monday, Becerra said his office would be reviewing those findings and pledged to apply more scrutiny to health care mergers and anti-competitive practices across the state.Sutter Health has gobbled up doctors' practices across the Bay Area, gaining market muscle that has pushed costs upward. Obstetricians employed by Sutter Health, for example, are reimbursed about three times more for the same service than independent doctors, according to a KHN review of OB-GYN charges on several insurers' online cost estimators. It's a key reason why Northern California is the most expensive place in the country to have a baby.At his news conference, Becerra said he's committed to scrutinizing other players besides Sutter in the health care industry who may be engaging in anticompetitive behavior and potentially harming consumers.Consumer advocates and state lawmakers applauded Becerra's aggressive action because of the toll high prices take on millions of Californians. Many residents struggle to pay rising insurance premiums and out-of-pocket expenses for emergency room visits or routine hospital tests."Consumers bear the burden of these monopolistic activities," said state Sen. Ed Hernandez (D-West Covina), chairman of the Senate health committee. "To ensure health care is affordable and accessible to all, we have to get a handle on predatory pricing."In many ways, Becerra's lawsuit mirrors a similar civil case filed in 2014 by a grocery workers' health plan.The attorney general's office filed a motion in court asking for its lawsuit and the class action to go to trial together before the same judge. The trial is scheduled for June 2019 in San Francisco."While we certainly would have preferred this happened earlier, we respect the attorney general's care in conducting a thorough investigation before filing charges," said Richard Grossman, the lead plaintiffs' lawyer representing the class of more than 1,500 employer-funded health plans.In its lawsuit, the attorney general's office blamed Sutter for much of the increase in health care costs across Northern California because "Sutter embarked on an intentional, and successful, strategy of securing market power in certain local markets." State lawyers also pointed out that Sutter's conduct triggered an "umbrella effect" by encouraging other providers to raise their own prices.The state's lawsuit said Sutter used its windfall from excessive prices to acquire more hospitals and medical groups. It also enabled Sutter to "bestow extremely high salaries for its officers and upper management," according to the state complaint.Patrick Fry, Sutter's chief executive from 2005 to 2016, had .4 million in total compensation during his last year there, according to Sutter's 990 tax filing for 2016, the most recent year available.Overall, 18 executives at Sutter had million or more in total compensation during 2016, the federal tax filing shows.Karen Garner, a Sutter spokeswoman, said Fry's compensation in 2016 reflects retirement benefits he accrued over many years. She added that "industry comparisons show our salaries are reasonable and competitive, given the size, scope and complexity of our organization." 7370

Calico Critters and a VTech Drill & Learn Toolbox are among several toys a Florida consumer advocacy group has deemed dangerous in its annual toy safety report ahead of the busy holiday shopping season.On Monday, the U.S. Public Interest Research Group Education Fund (PIRG) released its "Trouble in Toyland," a guide to help keep children safe from dangerous toys.The report warns about several toys being sold across the U.S. are choking hazards, recalled toys being resold on eBay, magnets being swallowed, noisy toys, and in-app purchases.When it comes to toys with small parts, the report recommends parents inspecting the toys thoroughly "regardless of what the label does or doesn't say."For noisy toys, the report says they can hurt your child's hearing, so an adult should lower the volume or place tape over the speakers to "muffle the sound."Several toys mentioned in the report include:Neutronball building sets and magnets made by Zen Magnets LLC are considered choking hazards, according to PRIG."Never allow young children to play with high-powered magnets, and talk with older children about the dangers of being careless and leaving them within reach of their siblings," the report stated.Toys that have been recalled - 6" Promotional Aflac Doctor Duck, the Step2 Little Helper's Children's Grocery Shopping Cart, and the Fisher-Price Barbie Dream Camper — were recently found for sale on eBay."When shopping for toys, especially at garage sales and second-hand stores or sites, check saferproducts.gov to confirm the toy hasn't already been recalled," the report said.The report is there to inform the public as well as suggest guidelines for lawmakers. 1683

CARMEL VALLEY (KGTV) - A man threatened to shoot a clerk at the Everbowl in Carmel Valley and ran away with cash on Saturday night, San Diego Police said.According to police, an armed man entered the restaurant shortly before 6 p.m. and demanded cash. The clerk gave him an unknown amount of money, and the suspect ran away.The suspect was last seen running through the parking lot. He is described as a white man, 30 to 40 years old, about 5' 11" tall with a medium build. He was unshaven and wearing a blue hooded jacket, dark beanie and jeans.Anyone with information is asked to call San Diego Police. 617

CARLSBAD, Calif. (KGTV) — A North County company is offering one lucky person the chance to pursue their passion without worrying about the funding to start.The contest is being offered by Carlsbad-based apparel company prAna. The company is looking for one person who is willing to quit their day job and pursue their dream, offering the winner 0,000 to begin their new career.“The goal of this promotion is to spread our 'Clothing for Positive Change' philosophy,” said Jeff Haack, vice president of global marketing at prAna. “By asking the question, ‘how can prAna help you affect positive change in your life,' we are giving our audience a means to share their stories about what positive change looks like for them.”Think you are the right fit for the opportunity? To apply, submit a one- to three-minute video between Aug. 15 and Sept. 16 explaining what your current job is and what your dream job would be — the more inspirational the better. Applicants are also encouraged to show their passion in action.Submission will be reviewed based on passion, boldness, and originality. A winner will be selected and asked to quit their job and share updates on their new journey. Funding will then be distributed in four payments.Visit the company's website here to enter your story. 1296

BURBANK (CNS) - The Walt Disney Co. reported sharp year-over-year third-quarter revenue drops today, thanks in part to the coronavirus-prompted closure of its theme parks, but the success of its streaming services, most notably Disney+, gave the Burbank company a needed boost.Disney reported third-quarter revenue of .8 billion, a 42% drop from last year's third quarter, but still ahead of industry expectations.Revenue losses were fueled largely by the closure of Disney parks worldwide, with the company's Parks, Experiences and Products segment seeing an 85% revenue drop from the third quarter of last year. The only Disney segment not to report a drop in revenue was the Direct-to-Consumer & International segment, which showed a 2% gain.In terms of operating income, the company's Media Networks showed a 48% jump.``Despite the ongoing challenges of the pandemic, we've continued to build on the incredible success of Disney+ as we grow our direct-to-consumer businesses,'' Disney CEO Bob Chapek said in a statement. ``The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions -- a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.''The company's streaming services are Disney+, ESPN+ and Hulu, with Disney+ representing more than half of the empire's 100 million subscribers, according to the company.Disney reported diluted earnings per share of 8 cents, down from .34 in the same quarter last year.The company had originally planned to reopen its Disneyland and California Adventure theme parks in Anaheim on July 17, but those plans were scrapped as the state saw a surge of coronavirus cases. That surge prompted a delay in the state's release of operating protocols for large venues such as theme parks.The Downtown Disney shopping and entertainment district reopened to the public on July 9, although some individual businesses remained closed. 2016

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