Sutter Health Settles $11 Million Lawsuit Over Fraudulent Anesthesia Billing Claims

Deadline
Deadline: June 9, 2025
Total Settlement Amount
Total amount allocated for all claims
Individual Payout Range
Estimated amount per eligible claim
Proof of Purchase
Claim Form 5500 or Form 5500-SF issued by the class member’s healthcare provider.
Settlement Summary
Sutter Health, a non-profit health system operating in Northern California, has agreed to settle a class action lawsuit for $11 million. The allegations involved fraudulent billing for anesthesia services that were either not provided, double-billed, or described dishonestly. The lawsuit benefits self-funded payers, including California citizens and state and local government entities, who paid Sutter Health for anesthesia services between January 1, 2003, and December 31, 2013. The lawsuit claimed that Sutter Health's deceptive billing practices resulted in these payers overpaying for anesthesia services. This lawsuit comes after a string of legal troubles for Sutter Health. In March 2021, the health system agreed to pay $575 million in an antitrust settlement over allegations of anticompetitive contracting practices with major health insurance companies. In February 2022, another antitrust class action was filed, accusing the company of unfair practices in rural areas of Northern California. While Sutter Health has not admitted any wrongdoing, these cases highlight a trend of questionable business practices within the healthcare industry. The anesthesia billing settlement allows affected parties to receive a cash payment based on the number of active participants in their plan from 2003 through 2013 that they list on their claim form.
Entities Involved
Eligibility Requirements
- Must be a self-funded payer who was a citizen of California on Jan. 6, 2015
- State and local governmental entities of the State of California that paid Sutter Health for anesthesia services, excluding conscious sedation
- Services must have been administered in Sutter Health’s operating rooms at acute care hospitals at any time from Jan. 1, 2003, to Dec. 31, 2013
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Submitting false information in a settlement claim is considered perjury and will result in your claim being rejected. Fraudulent claims harm legitimate class members and may result in legal consequences.
If you are unsure about your eligibility for this settlement, please visit the official settlement administrator’s website using the link provided above. Review the eligibility criteria carefully before submitting a claim.
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