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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

Channing Tatum is releasing his first children's book called "The One and Only Sparkella."The actor announced the news along with a photo of himself with the book on Twitter."I don’t know about you but things got a little weird for me in quarantine," Tatum tweeted. "I locked myself in my daughter’s room & found my inner child. So this is what I created for my little girl. From what is, I guess, the little girl in me. Thx for reading. #Sparkella." 462

Buyers beware! Sometimes when you spot a good makeup deal, it's too good to be true.The Los Angeles Police Department says it confiscated counterfeit makeup that tested positive for high levels of bacteria and animal waste.The department seized 0,000 worth of bootleg cosmetics on Thursday after raiding 21 locations in Santee Alley, a Los Angeles fashion district, said LAPD Capt. Marc Reina."Those feces will just basically somehow get mixed into the product they're manufacturing in their garage or in their bathroom -- wherever they're manufacturing this stuff," Detective Rick Ishitani told?CNN affiliate KABC.One of the brands being knocked off was Kylie Jenner's Kylie Cosmetics.?Kim Kardashian West, Jenner's sister, took to Twitter to respond to the raid:"Counterfeit Kylie lip kits seized in LAPD raid test positive for feces. SO GROSS! Never buy counterfeit products!"Other prominent makeup brands that were faked included Urban Decay, MAC and NARS.The LAPD was tipped off by the brand-name companies, which received complaints from consumers who said they had rashes and bumps after using their products. The complainants had one thing in common: They bought the product in the Los Angeles fashion district.The packaging of the bogus products looks like the real deal, but the prices are way too low."If you're getting something that's 50% off, 75% off, it tells you that it's bad," Ishitani said.Police arrested the owners at six of the raided locations, and the other operations received cease-and-desist orders, according to CNN Affiliates KABC. 1576

Carnival Cruise Lines announced Monday it will continue a suspension of operations in North America through the end of September amid the spread of the coronavirus.The cruise line’s decision takes its suspension well past a US government-mandated prohibition on cruises. The CDC issued a 100-day no-sail order on April 15, which is set to expire on July 24. It’s unclear whether the CDC will extend the order.Cruise ships became the site of several early outbreaks of the virus, causing passengers on board a number of ships to be quarantined as officials tried to determine how to safely allow passengers to disembark.The issue with outbreaks of COVID-19 have lingered on cruise ships as hundreds of crew members have remained quarantined on board ships for months.“Carnival is giving guests who wish to move their booking to a later date a rebooking offer that combines a Future Cruise Credit (FCC) and either a 0 or 0 Onboard Credit (OBC) that has proven very popular with their guests,” Carnival said in a statement. “Guests, as always, have the option to receive a full refund. The process is fully automated so that guests can submit their preference online and they have until May 31, 2021 to make a selection.”Whether Carnival is able to resume operations in October remains in doubt. Leading infectious disease experts expect cases in the fall to surge again. 1382

CHICAGO, Ill. -- As coronavirus cases continue to spike, some states are reinstating restrictions on indoor dining. Restaurants already reeling with huge financial strains are trying to find innovative solutions to keep their doors open. Some are thinking outside the box and into a bubble.“What you're seeing in Washington D.C. and Chicago and elsewhere are local mayors trying to incentivize and help restaurants winterize their outdoor spaces and really doing whatever they can to encourage outdoor dining,” said Mike Whatley, vice president of state and local affairs for the National Restaurant Association.But with indoor dining shut down in many places across the country, geodesic domes or igloos, tents and mini greenhouses are popping up to help keep diners warm and safe.The National Restaurant Association says a recent survey indicates 49% of full-service restaurant operators say they are taking actions like installing tents or patio heaters to extend their outdoor dining season.Restaurant owner Sophie Huterstein and her staff built 14 4x6 greenhouses for use outside her restaurant, The Darling.“We’ve been utilizing this system of being able to dine together, apart from the moment we reopened after the initial shutdown, as a genuine intent to protect the guests and our staff,” she said.The idea was inspired by an installation in Amsterdam. Each one can accommodate two to four people and is helping sustain her business while indoor dining is restricted.“You are sitting closely in there, but it is our hope that no one would dine with people that they are not very familiar with,” said Huterstein.Safety experts say this type of seating can keep people safe if there’s frequent cleaning and ventilation.California resident Sarah Moffat dined inside a greenhouse for the first time.“I don't know if we're gonna have a sense of normalcy ever again,” said Moffat. “But to have moments that you can share with friends and your close loved ones in a safe environment is kind of amazing.”The City of Chicago challenged designers from across the country to propose winter dining solutions.Atlanta-based national design firm ASD/Sky created a modular cabin inspired by ice fishing huts that would fit inside the footprint of a parking space. Their goal was to create a reason to stay on-site instead of taking out.“People just want an experience that’s what we're lacking right now,” said ASD Sky Designer Nicole Grillet. “So that was the driver behind creating this idea.”Urban development designers Neil Reindel and Flo Mettetal were inspired by Legos with their "Block Party" concept. The compact, heated two-seater eat-in modules can be deployed and retracted.“Much like how you would previously push tables together, the idea would be that these frames of two could be connected in increments of two and you could have larger or smaller groups based on that,” said Reindel.It’s something they say could be utilized anywhere in the country.“It was really meant to be user friendly and kind of fit the needs of the restaurant wherever it is,” said Mettetal.With 40% of restaurant owners worried about staying in business through February, many are banking on futuristic dine-in concepts to help them brave the uncertain winter ahead. 3260

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