Sutter Health Issues Statement on Settlement With UFCW & Employers Benefit Trust

SACRAMENTO, California, Dec. 23 -- Sutter Health issued the following statement by Flo Di Benedetto, senior vice president and general counsel:

"We were able to resolve this matter in a way that enables Sutter Health to maintain our integrated network and ability to provide patients with access to affordable, high-quality care. Together with the Attorney General, the parties selected an experienced monitor who will oversee the agreement, which specifies parameters for contracting between Sutter Health and insurance companies going forward. There were no claims that Sutter's contracting practices with insurance companies affected patient care or quality. In fact, Sutter's quality of care is nationally recognized with the majority of our hospitals and care facilities outperforming state and national averages in nearly every measure of quality.

"Over the past decade, we have invested nearly $10 billion in new technologies and state-of-the-art facilities to increase access to safe, high-quality care in our communities. We have rebuilt hospitals to withstand earthquakes, taken care of millions of Medicare and Medi-Cal patients, expanded services in rural communities and spread new life-saving technologies and best practices across our integrated network. As an organization, we will have to evaluate future capital investments based on the impact of the settlement.

"Sutter Health is committed to keeping our care connected so patients continue to receive affordable, high-quality, personalized and coordinated care. Despite the increasing cost of care and operating in high-wage markets, we remain focused on making healthcare more affordable for our patients."

Additional Settlement Details

* Injunctive relief: The settlement agreement provides self-funded payers with additional network flexibility, while preserving Sutter's ability to ensure that certain insurance networks, when they include Sutter providers, are fair to patients in terms of access to Sutter doctors and hospitals, and to minimize the risk of unforeseen patient costs.

* Monetary relief: California-based self-funded group health plans that are class members will receive financial payments with amounts determined by the plaintiffs under a plan of allocation to be approved by the court. An independent claims administrator is responsible for all claims administration and information.

* There is no admission of wrongdoing on the part of Sutter Health, and no court has found that Sutter violated any laws.