California Attorney General Xavier Becerra (AG Becerra) announced on Friday, December 20, 2019, the terms of a comprehensive settlement agreement reached with Sutter Health (Sutter), the largest hospital system in Northern California. WHAT HAPPENED? Procedural History In March 2018, the California Attorney General’s office brought a civil antitrust action under California state law against Sutter alleging violations of California’s Cartwright Act. Sutter owns and operates 24 hospitals and 35 outpatient centers and partners with physician organizations with 5,500 members and 12,000 other physicians in northern California, among other operations. The complaint alleged that costs in northern California have rapidly increased, and are higher than in other parts of the state, in large part due to Sutter’s contractual practices with commercial health plans. The complaint alleged, specifically, that Sutter: Used its market power in certain local markets across all...

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