SAN FRANCISCO, Oct. 1 /PRNewswire/ -- On Friday, Sutter Health executives confirmed that the beleaguered health care giant is currently being investigated by the United States Department of Justice (DOJ). The federal agency’s investigation of Sutter is yet another indication of the growing vulnerability of the Sacramento-based corporation, which is now in the 19th day of a strike by 800 caregivers at California Pacific Medical Center, its flagship hospital in San Francisco.
Sutter Health revealed the DOJ investigation in a legally required disclosure connected to the company’s upcoming sale of $271 million in tax- exempt bonds. According to Sutter’s disclosure, the DOJ is investigating the company’s contracting practices for possible violations of antitrust laws. While Sutter has admitted the existence of the federal investigation, it has refused to provide any substantial details to the public.
The U.S. Department of Justice joins a parade of federal, state and local government agencies already investigating Sutter. Thus far, this list includes the U.S. Senate Finance Committee, the U.S. House Ways and Means Committee, the U.S. House Energy and Commerce Committee, the National Labor Relations Board, the California Attorney General, the California Assembly Committee on Taxation and Revenue, the Federal Trade Commission and the San Francisco Tax Assessor.
“Sutter Health may well be the most investigated hospital corporation in America,” said Sal Rosselli, president of SEIU United Healthcare Workers - West. “The extraordinary breadth of government investigations is clearly related to Sutter’s profits-before-patients business philosophy. We call on Sutter to be honest with the public by releasing details of the DOJ investigation. We need to understand the sorts of wrongdoings Sutter may have committed so we can assess their effects on patients, caregivers and our communities.” As the largest provider of hospital care in Northern California, Sutter serves millions of the region’s patients.
In addition to government investigations, Sutter is defending itself against three class-action lawsuits filed by its own patients. Patients allege that the $6 billion company overcharged poor, uninsured patients and then subjected them to abusive bill-collection practices.
SEIU United Healthcare Workers -- West, with more than 140,000 members, is the largest healthcare union in the Western United States. We represent every type of healthcare worker, including nursing, professional, technical and service classifications. Our mission is to achieve quality healthcare for all.
CONTACT: Thea Lavin 510-520-7732 Kay Carney 510-773-7229
SEIU United Healthcare Workers-West
CONTACT: Thea Lavin, +1-510-520-7732, or Kay Carney, +1-510-773-7229, bothfor SEIU United Healthcare Workers-West
Web site: http://www.seiu-uhw.org/
