Result: $46 million settlement
In May 2011, the Court permitted the California Insurance Commissioner to join the litigation against Sutter. Plaintiffs defeated multiple motions by Sutter, including three demurrers, two motions to strike, a motion to compel arbitration, and a motion to severely restrict the discovery available to Plaintiffs. In December 2011, the Court denied Sutter's motion to strike Plaintiffs' jury demand, ruling that Plaintiffs have a right to a jury trial under California law.
As the trial was to start, the parties announced in November 2013 a $46 million settlement, a record amount under the state insurance whistleblower law. Under the settlement, Sutter will bill only a one-time charge for anesthesia services during surgical procedures, rather than billing on a time basis simultaneously with its timed operating room charge and a separate, timed charge by the anesthesiologist. Sutter will also disclose the basis and average cost of these anesthesia services charges.
Contact Lieff Cabraser
If you wish to report a fraud in billing practices or in contracts with the government or insurance companies, please contact Lieff Cabraser attorney Nimish R. Desai toll free at 1-800-541-7358 or use the contact form below. We will promptly, confidentially review your case for free and without any obligation on your part.