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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) - Carlsbad neighbors banded together to finish the hike of a woman who was stabbed to death in Hosp Grove Park.Dozens of hikers descended upon the trail Saturday afternoon, honoring 68-year-old Lisa Thorborg.Thorborg was walking or jogging, according to police, between 10 a.m. and 11 a.m. on Monday when she was attacked.RELATED: Carlsbad police: Woman found dead on hiking trail was stabbed to death"We loved her, though many of us didn't know her. I didn't know her personally, but you could definitely tell she had a sweet spirit," Neighbor Theresa Dooley said.Dooley said she was shocked and deeply hurt by the news. She said neighbors had been discussing what happened on the Nextdoor app and organized a walk for Thorborg."Some would like to finish the walk she began, some of us might walk various areas of the park here," Dooley said.Dooley said they wanted to wash away the fear surrounding the park, "we don't want our parks taken away from us, we don't want to live in fear, we want to be able to enjoy this, we want families to be able to come out here."Dooley added she will be taking precautions now when she hikes, "as women, it's probably important to have a partner with us, someone that we're hiking with."A tipster led investigators to identify a suspect as white or Hispanic, 5 feet 10 inches to 6 feet 3 inches tall, with a husky build and a tan complexion with dark hair. The tipster told police the man was wearing a black shirt, black shorts, and possibly a black hat, and he was walking slowly with a slight shuffle or limp.Anyone with information on the case or who was in the area of Hosp Grove Trail East, between 10 a.m. - 12 p.m., is asked to call Carlsbad Police at 760-931-2165. 1743

CAPE CANAVERAL, Fla. (AP) — The first astronauts to ride a SpaceX capsule into orbit are headed toward a splashdown Sunday in the Gulf of Mexico to close out their two-month test flight.It will be the first splashdown in 45 years for NASA astronauts and the first return in the gulf. Florida's Atlantic coast is starting to see the effects of Tropical Storm Isaias. But waves and wind are calm near Pensacola in the Florida Panhandle.Test pilots Doug Hurley and Bob Behnken departed the International Space Station on Saturday night. They awoke to a recording of their young children urging them to “rise and shine.” 624

CEDAR PARK, TX — Three police officers were shot Sunday while responding to a call in Cedar Park, Texas, according to police.The three officers suffered non-fatal injuries while responding to the call on Sunday afternoon and are currently stable at a local hospital.The shooting began an hours-long standoff that lasted throughout the evening on Sunday and well into Monday morning. Two hostages were released from the home on Monday morning at about 8 a.m. CT. About an hour later, a third hostage and the suspect emerged from the home peacefully.Preliminary information obtained by ABC News says the incident started as a domestic dispute. 650

CARLSBAD (CNS) - A report of domestic violence triggered an hours-long standoff in a Carlsbad neighborhood Friday night into Saturday morning, police said.Around 10 p.m. Friday, a woman called police and said her husband had assaulted her, cut her hand with a knife and threatened to kill her before she could escape, according to Carlsbad Police Lt. Kevin Lehan. The woman also told police her husband was heavily intoxicated.Police headed to the couple's residence, on Juniper Avenue between Interstate 5 and Garfield Street, and found the man had barricaded himself inside, Lehan said.The man wouldn't cooperate with officers and after a few hours, a SWAT team forced entry into the home through the front door and a window, according to Lehan.Officers searched the home and ultimately found the man hiding under a bed. He was taken into custody without further incident.It was determined the man was unarmed when police arrested him, Lehan said. 957

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