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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) -- 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

CAMP PENDLETON, Calif. (KGTV) - A brush fire broke out in a training range on Camp Pendleton Friday, creating a plume of smoke visible above North San Diego County.The fire started at 11 a.m. near the center of the base in the Basilone/San Mateo area, officials said. By 3:30 p.m., 50 acres had burned.Helicopters were deployed to drop water and fire retardant.Ground crews from Camp Pendleton and Orange County Fire also battled flames in 90-degree weather.Officials said there were no structures threatened by the fire. 529

CHICAGO, Ill. – A futuristic innovation is changing the way doctors set broken bones. A startup company called Cast21 has created a new type of cast that completely overhauls its plaster and fiberglass predecessors. It takes just minutes to put on and lets patients enjoy an active life, even allowing them to swim and shower with it.A couple of weeks ago, 12-year-old Jett Karrick took a hard fall during a basketball game.“He went over and stopped himself with his left hand and he ended up having a bicortical radius fracture,” said his father Tony.A trip to the emergency room put him in a traditional fiberglass cast, but he was instantly unhappy.“Was itching quite a bit,” said Karrick. “He didn't like the way it smelled, the whole drama associated with getting in the shower and the garbage bag.”An internet search led the Karricks to the innovative new cast, a futuristic sleeve that's waterproof, lightweight and breathable.“This product is completely waterproof. You can wash your hands, shower, jump into a hot tub, go to the beach, and it'll dry right off afterwards,” said Ashley Moy, CEO and co-founder of Cast21. The company believes it could make smelly and itchy plaster casts a thing of the past.The casts start with a flexible hollow net sleeve.“So, we're going to be able to move your arm and whatever orientation we need to best keep the bones and fractures in place,” said Moy.Then a proprietary liquid is pumped into the cast’s tubes.“The liquid is going to take up any of the negative space that you had in there so that we can get a really acute and comfortable fit for you,” she said.Within minutes, the cast hardens.Earlier this week, Jett got his old cast removed and a Cast21 as a replacement.“This cast just gives me a lot more freedom. It lets my hand breathe and it doesn't stink as bad.”Nine-months into production and Cast21 is available in 13 states. While the Karrick family's insurance is covering the high-tech cast, costs can depend on the individual provider.“Our process is also way more efficient to apply and remove,” said Moy. “It's about six times quicker to put on and it only takes seconds to remove.”No saw is needed.And while the immobilization net is currently only available for lower arm fractures, the company says they are currently in research and development on new sleeves for other limbs. 2355

CAMPO, Calif. (KGTV) — Extreme heat swept through San Diego County Friday, with many areas reaching triple-digit temperatures. But some residents said they were more miserable than usual, as their power was shut off for half the day.The heatwave is here, and for those living in the deserts, things are just unbearable."My swamp cooler is going 24 hours, and I've got my ceiling fan going!" Campo resident Karen McIntyre said.But McIntyre says she is one of the lucky ones. She is worried more about her family living in Lake Morena, who, for about half the day, did not have any power."During the middle of a pandemic, during the middle of an extreme heatwave, they still send out notices advising them that they're going to be turning the power off today!" McIntyre said about her power company, SDGE.Although dated July 27, McIntrye says her family in Lake Morena received a letter from SDGE explaining the planned power outage on July 30, less than 24 hours before the planned outage. She said she had to scramble to get her two-year-old niece a place to cool off."She has a medical condition where she has to have her oxygen," McIntyre said. "She's on a feeding tube, and she has to stay in a cool house. And going out to another place or another home is stressful for her."The County has set up a few Cool Zones in East County. But McIntyre says her family and many others do not have the means to get there."That’s still too far away for a lot of people who have limited transportation," McIntyre said.SDGE says due to the extreme heat, it canceled all non-critical planned outages for Friday and the weekend. But a spokesperson said the one affecting the Delzura, Potrero, and the Campo area is a critical case of safety, where they have to replace wood poles to steel. They sent ABC 10News a statement that reads in part: 1838