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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

CARLSBAD, Calif. (KGTV) -- A California Highway Patrol Officer who lost family members in a DUI crash is sharing his story with local students.Tuesday, students saw a graphic and emotional scene play out right before their eyes. Authorities hope it might make them think twice before drinking and driving.The mock DUI crash played out on the field at Sage Creek High School and it all looked very real. The aftermath of a drunk driving crash, fellow classmates injured or dead and one of their own eventually arrested for getting behind the wheel.For CHP Officer Mark Latulippe, the program, called Every 15 Minutes, takes on an ever greater meaning this year.A few months ago, his cousin Scott Latulippe, Scott’s wife and son were hit and killed by a suspected drunk driver in Austin, Texas. Scott was a well-known teacher at Valley Center High School.The message at the event Tuesday was lives forever changed because of drinking and driving. The sentiment was echoed by Officer Latulippe who says his family’s story, although tragic, is all too common.The program will continue at Sage Creek High School Wednesday with a mock funeral and presentation from Officer Latulippe. 1190

CARLSBAD, Calif. (KGTV) -- People took to social media New Year's Eve after a funnel cloud was spotted over Carlsbad. According to the National Weather Service, several reports of funnel clouds were reported along the coast Monday. The organization's Twitter account shared video of the funnel cloud. Throughout the video, the cloud can be seen forming before dissipating. RELATED: Snow in the forecast for San Diego County mountainsThe National Weather Service noted that the cloud spotted in Carlsbad is not a tornado because it didn't make contact with the ground. RELATED: Check today's forecastThere have been several reports of funnel clouds along the coast today. Here's the most recent one from #Carlsbad captured on video. Note: Not a tornado, as this requires contact with the ground. #cawx https://t.co/kPpZefgLCB— NWS San Diego (@NWSSanDiego) December 31, 2018 880

CARLSBAD, Calif. (KGTV) - More than two and a half years after Team 10 first reported about a North County property management company accused of stealing money from clients, the victims are finally getting their money back.Kelley Zaun owned Carousel Properties, a Carlsbad property management company. Victims first told Team 10 in 2016, they hired her to pay fees associated with their rentals. They said she did not pay those fees. She was accused of taking roughly 0,000 from victims, according to investigators.In 2018, Zaun faced 29 felonies for embezzlement, according to Deputy District Attorney Anna Winn. Zaun entered into a plea deal and agreed to a year in custody. With the help of the DA’s office, Zaun’s former clients were able to get their money back through the Department of Real Estate’s Consumer Recovery Account. RELATED: Team 10: Police investigating Carlsbad companyStephen Lerner, the Assistant Commissioner for Legal Affairs for the department, said so far, 23 victims have been reimbursed through the account. Other victims’ payments are still processing. They have been able to reimburse 2,084.68 thus far.The Consumer Recover Account is an option for fraud victims when trying to recoup money from the person who took it from them. In order to utilize the fund, Lerner said there must be a criminal or civil court order for the defendant to pay back money he or she took. If victims cannot get refunded from the person who stole it, they can apply through the Department of Real Estate (DRE).Winn said she volunteered to be the victims’ liaison with the DRE, as the process for reimbursement is lengthy and many of the victims were elderly. One of Zaun’s victims told Team 10 he is “extremely grateful” for the DA’s office work on this case. RELATED: Carlsbad company owner faces felonies for stealing moneyVictims started receiving reimbursements within the past couple of weeks. Money for the account comes from license fees. Lerner told Team 10 there are approximately 421,000 people with a license under their department, which includes broker and salesperson’s licenses. 12 percent of the license fee paid goes to the account.Since 1964, the DRE has paid more than million to victims. Approximately 54 percent of all applications are approved.RELATED: Homeowners: Carlsbad company owes them thousandsDistrict Attorney Summer Stephan told Team 10 in a statement: “In addition to a conviction and holding this defendant accountable, we also wanted to do our best to make the victims financially whole. Working closely with the Department of Real Estate, we were able to get a significant amount of money returned to victims and it’s gratifying to see the funds collected through real estate license fees used as intended— to un-do the financial damage done by the defendant in this case.” 2838

CHARLOTTE, N.C. (AP) — Jimmie Johnson is the latest NASCAR superstar to climb out of his car, with the seven-time champion announcing Wednesday that 2020 will be his final season of full-time racing.The winningest driver of his era will have a 19th season in the No. 48 Chevrolet and once again chase a record eighth championship. Johnson made the announcement in a video on social media.“I am so thankful for 18 incredible years of racing in NASCAR,” Johnson said in the black-and-white video comprised of highlights from his career. “This sport has been good to me and allowed me to do something I truly love. I showed up chasing a dream and achieved more than I thought possible. I am looking forward to next season and celebrating what will be my last year as a full-time Cup driver. I know what this team is capable of and I hope 2020 is one of the best yet.”#Chasing8 one final time pic.twitter.com/ZoldabKy9M— Jimmie Johnson (@JimmieJohnson) November 20, 2019 Johnson joins an exodus of popular drivers that began when Jeff Gordon retired after the 2015 season. Tony Stewart, Dale Earnhardt Jr, Carl Edwards, Matt Kenseth, Danica Patrick and Jamie McMurray are among those who followed Gordon.Johnson, whose social media post carried the hash tag “Chasing8 one final time,” scheduled a Thursday news conference at Hendrick Motorsports to discuss his decision. It will be a familiar farewell scene for the team since both Gordon and Earnhardt were Hendrick drivers.Johnson had two years remaining on his contract when new sponsor Ally signed on before this year to replace Lowe’s, which had sponsored Johnson from his 2001 debut through 2018. Ally last month announced a three-year extension to sponsor the No. 48, but Johnson’s future was not tied to the renewal through 2023.“Jimmie Johnson is a legend in racing, the epitome of class and the ultimate representative of our brand,” said Andrea Brimmer, chief marketing officer at Ally. “We are proud that Jimmie will finish his remarkable NASCAR driving career with Ally as his primary sponsor.”Johnson has 83 career victories, tied with Cale Yarborough for sixth all-time. The California native’s seven titles are tied with Richard Petty and Dale Earnhardt for most in the Cup Series.The 44-year-old Johnson has been in a two-year slump and last won a race in 2017. He had two different crew chief changes this season and missed the playoffs for the first time since the format began in 2004.Johnson finished 18th in the final standings and has just five top-five finishes the last two years. He won his seventh title in 2016.Johnson has driven for Rick Hendrick his entire Cup career and set a NASCAR record in winning five consecutive titles from 2006 through 2010, an accomplishment that earned him Associated Press Male Athlete of the Year after his fifth crown.All 83 of Johnson’s wins have come in the No. 48 and include two Daytona 500s, four victories at Indianapolis Motor Speedway, a record 11 wins at Dover International Speedway, nine at Martinsville Speedway and eight at Charlotte Motor Speedway. 3077