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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

Cancer treatments can take a toll on the mind and body, leaving many patients feeling alone and isolated.Now, senior citizens fighting cancer, like Mary Hill, are able to escape their hospital rooms through virtual reality.By putting on a pair of goggles, Hill now spends her chemo appointments on stage at Red Rocks Amphitheater as an orchestra plays classical music all around her virtually, while in reality, she receives cancer treatments. “Wherever it is that they want to be that’s not a hospital room, we give them the opportunity to go there,” said Kyle Rand with Rendever, a company designed to reduce social isolation through shared experiences in virtual reality.Rendever is operating in more than 200 locations across the U.S. and Canada, serving seniors by offering them hundreds of virtual experiences to choose from.“The magical part about this is that they get to move from the hospital room that they’re in to all of a sudden being at the Red Rocks, or being standing on the Eiffel tower, or being in Brazil,” Rand said.Medical experts say this kind of distraction therapy is very helpful, especially during the COVID-19 crisis.“In the middle of this pandemic, a place that we’re not able to go to right now and enjoy and everyone loves Red Rocks,” said Nikki Caputo with UCHealth.She says adding VR for patients is somewhat challenging for an already busy staff, but that the benefits are well worth it.“From a mind, body and soul perspective, being able to put on a headset and take your mind to a completely different place, it's quite something,” she said.It's something patients like Hill say helps them escape during this pandemic and ultimately overcome depression and isolation.“With COVID, I don’t go anywhere,” she said. “I’m safe and secure and there’s an outside world that I can think about instead of myself.” 1848

California is still counting ballots more than three weeks after Election Day.The slow counting process has been underscored by a series of House races in California carrying on for days past November 6. Now, the only remaining uncalled US House race is in California's 21st Congressional District.There, Republican Rep. David Valadao trails Democratic challenger TJ Cox by 506 votes -- or about half a percentage point -- with votes still being counted. If Cox holds on to win, it would give Democrats a net pickup of 40 House seats this year.So why is the process so slow?California officials say the effort is built with a series of safeguards, many of which don't exist in other states. The bottom line: California's vote-counting process is built to take a long time."The philosophy here is, while it may take a little bit longer to finish counting ballots in California, the policies are in place to ensure that all votes can be properly processed and added to the tally -- and I guess better said, that all voices can be heard in the political process," California Secretary of State Alex Padilla said in a phone interview Wednesday.The state's laws give its voters, about two-thirds of whom cast their ballots by mail, more time to send in their ballots. As long as they are postmarked by Election Day and arrive at county elections offices by Friday -- three days after the election -- they're counted.California also requires counties to give voters time to fix any issues with their ballots -- such as a missing signature -- and requires counties to contact those voters to inform them of any problems.When voters mail ballots to the wrong county, those counties are required to send them to the right one.The state allows same-day voter registration. It also allows those whose names do not appear on voter rolls due to clerical errors -- as Los Angeles County had in June, when a printing error left 118,000 names of registered voters off the rolls for the primary -- to cast provisional ballots that must then be checked out.Then, there's the reality that the state with the nation's largest population and 58 counties, with varying staffing levels, simply have more ballots to count.About 7.4 million ballots were counted on election night. But as of the end of election week, there were still 4.8 million mailed-in ballots left to count, the secretary of state's office said after surveying the counties.Padilla said there is a "sequencing" to the count -- with ballots mailed into the correct counties with no errors tallied quickly, and elections officials now "on the more time-consuming manual ballots to be processed."An end is coming, though. Two key deadlines loom: December 7, when counties must certify their election results, and December 14, when the secretary of state certifies the election.Any voter in California can request a recount but must foot the bill for it. The state doesn't have automatic recounts for close races.Padilla says he hears occasional frustration from voters that it takes so long to tally the results in California's closest races. But after explaining the state's procedures, he said, "most people do settle with, it's smarter to get it right." 3207

CARLSBAD, Calif. (KGTV) — A motorcyclist was killed on Friday after he lost control of his motorcycle and crashed into a building in Carlsbad.Carlsbad Police say the motorcyclist was traveling westbound on Faraday Ave. just after 3 p.m., when for unknown reasons he lost control and collided into a building.Officers arrived to find the motorcyclist unconscious. The rider, identified as a 29-year-old male from Encinitas, died at the scene.Police don't believe any other vehicles were involved and said it doesn't appear alcohol was a factor. It's unclear how fast the rider was traveling at the time of the crash.The area of Faraday Ave. and Orion Way was partially closed for the investigation but has since reopened. 728

CAPE CANAVERAL, Fla. (AP) — The first astronauts launched by SpaceX are breaking new ground for style with hip spacesuits, gull-wing Teslas and a sleek, matching rocketship. The color coordinating — white with black trim — is thanks to Elon Musk, the driving force behind both SpaceX and Tesla. NASA astronauts Doug Hurley and Bob Behnken like the new look. The true test comes Wednesday when Hurley and Behnken climb aboard a SpaceX Dragon capsule atop a SpaceX Falcon 9 rocket and, equipment and weather permitting, shoot into space. It will be the first astronaut launch from Florida’s Kennedy Space Center since the last shuttle flight in 2011.The launch also marks the first attempt by a private company to send astronauts into orbit. Only the governments of the U.S., Russia, and China have done that. 815

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