Skip to Main Content

When Sutter Health was on trial for anticompetitive conduct in 2022, the San Francisco jury missed out on some crucial details. They didn’t hear, for example, how its former finance chief said the system would make an extra $200 million per year by making insurers contract with all of its hospitals instead of just a few. Or how its former CEO said, “Related to the health plans, we force them to pay us more.”

That evidence was indeed relevant, and the judge erred by not allowing it to be presented during the month-long trial that concluded in March 2022, a U.S. appeals court wrote in its ruling on Tuesday. The Ninth Circuit panel overturned Sutter’s win in the class-action case alleging that Sutter used its market power to drive up health care costs across the region by more than $400 million. Tuesday’s decision means the case will likely get a second trial.


“Effectively, the appellate court said the jury was tainted,” said Matthew Cantor, lead counsel for the plaintiffs. “So the jury’s verdict is discarded.”

STAT+ Exclusive Story


This article is exclusive to STAT+ subscribers

Unlock this article — and get additional analysis of the financial innards of our health care system — by subscribing to STAT+.

Already have an account? Log in

Already have an account? Log in



Totals $468 per year

$39/month Get Started

Totals $468 per year



for 3 months, then $39/month

$30 for 3 months Get Started

Then $39/month



Save 15%

$399/year Get Started

Save 15%

11+ Users


Savings start at 25%!

Request A Quote Request A Quote

Savings start at 25%!

2-10 Users


Annually per user

$300/year Get Started

$300 Annually per user

View All Plans

Get unlimited access to award-winning journalism and exclusive events.


STAT encourages you to share your voice. We welcome your commentary, criticism, and expertise on our subscriber-only platform, STAT+ Connect

To submit a correction request, please visit our Contact Us page.