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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
Buying a home can be nervewracking, especially if you’re a first-time home buyer. Not only is it probably the biggest purchase of your life, but the process is complicated and fraught with unfamiliar lingo and surprise expenses.To make the first-time home buying journey a little less stressful, NerdWallet has compiled these 25 tips to help you navigate the process more smoothly and save money. 404
CHAPEL HILL, N.C. - This week, we've heard promises surrounding treatment and vaccines related to COVID-19.Now, doctors at the University of North Carolina (UNC) are using next-generation genetic sequencing of the virus causing COVID-19 that can help testing and therapeutics.Dr. Dirk Dittmer, professor of microbiology and immunology at the UNC School of Medicine, has kept a close eye on COVID-19.“We know now more about this virus than any other virus before,” Dittmer told News 3. “The team has been working 24/7 ever since we had the first cases in March.”He and others are looking at how next-generation genetic sequencing can help with tracking mutations of the virus.“What we were looking at using next-generation technology is if the virus changes, who is the first person that had the virus in North Carolina? And, as we accumulated more and more cases, were these the same types of viruses we're seeing anywhere else in the world,” Dittmer said. “Very early on, we were able to show that one of the mutations that have been around in Europe was actually coming to the U.S.”The state-funded study shows this sequencing can help with the accuracy of diagnostic testing and vaccine effectiveness.“We wanted to make sure that the tests that were developed very early on would still work now and next year. The takeaway is they still work,” he said. “One of the worries that people have is that the virus might change, and therefore, today's vaccine might not work next year.”“Studies like this are part of the ongoing quality control and safety monitoring for vaccines,” Dittmer added.News 3 medical expert Dr. Ryan Light said this sequencing can help in the fight against the virus.“We can tell if it's changed a little bit, we can tell where that virus is coming from,” Light said. “It tells us where the outbreak is coming from, where the danger areas are, and it tells us that our therapies are still working.Meanwhile, Dittmer's lab will continue using this sequencing to track the virus through the end of the year.“We're just a little piece of the puzzle that helps every one to get rid of this thing,” he said.This story was first reported by Zak Dahlheimer at WTKR in Norfolk, Virginia. 2211
CHICAGO (AP) — President-elect Joe Biden is considering former Chicago Mayor Rahm Emanuel to serve as his transportation secretary.Biden's pick to lead the Transportation Department is not believed to be imminent, and Emanuel is among multiple candidates in the running for the Cabinet position. That's according to people familiar with the matter who spoke on the condition of anonymity to discuss the private deliberations.During his 8-year tenure as mayor, Emanuel is credited with fixing Chicago’s ragged public transportation system, overhauling O'Hare International Airport and Midway International Airport, and making the city a bicycle-friendly city, the Associated Press reported.Biden and Emanuel are no strangers to each other. Before becoming mayor of Chicago, Emanuel served as former President Barack Obama's first White House chief of staff.Emanuel is a substantial and somewhat divisive figure in Democratic Party politics.Some party progressives are critical of Emanuel's handling of the 2018 police shooting death of Black teenager Laquan McDonald by a white officer when Emanuel was mayor. 1116
Captain Sir Tom Moore stands proudly with his family in the Quadrangle of Windsor Castle, following his Investiture ceremony.Congratulations @captaintommoore ???? pic.twitter.com/EJDkuuXlnJ— The Royal Family (@RoyalFamily) July 17, 2020 244