Sutter Health $11M Billing Class Action Settlement

If you are a self-funded payer who paid Sutter Health for anesthesia services (excluding conscious sedation) between January 1, 2003, and December 31, 2013, you may be eligible to submit a claim for a portion of an $11 million class action settlement.

Sutter Health has agreed to pay $11 million to settle a class action lawsuit alleging violations of California’s Unfair Competition Law. The lawsuit claims that Sutter Health engaged in fraudulent, unlawful, and unfair business practices by billing self-funded payers for anesthesia services that were either not provided, double-billed, or misleadingly described.

Who is eligible for a settlement payout?

Entities must meet the following criteria:

• Be a self-funded payer, such as an employer, union, or healthcare benefits trust, that directly pays healthcare providers from your own health plan funds for claims submitted on behalf of your employees or members.
• Have been a citizen of California as of January 6, 2015, or be a California state or local governmental entity.
• Have paid Sutter Health for anesthesia services (excluding conscious sedation) administered in Sutter Health’s operating rooms at acute care hospitals between January 1, 2003, and December 31, 2013.

Self-funded payers are entities that directly fund healthcare expenses for their employees or members. Individuals are not eligible to participate in this settlement.

How much is the class action payment?

Pro Rata Cash Payment: Payment amount will be determined by the number of active plan participants during the class period and number of claims submitted.

How to claim a Sutter Health settlement payment

To receive a payment, entities must submit a claim form by the deadline of June 9, 2025. You can file a claim online or download the PDF claim form and mail it to the settlement administrator.

Settlement Administrator's mailing address: Sutter Anesthesia Billing Lawsuit Settlement, c/o JND Legal Administration, P.O. Box 91208, Seattle, WA 98111

Required proof

Entities must provide documentation indicating the number of active participants in your health plan for each year from 2003 to 2013. This information can be found on your Form 5500, line 6a(2), or Form 5500-SF, line 5b.

Payout options

Approved claimants will receive payment by check mailed to the address provided.

$11 Million settlement fund

The $11,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $3,666,667
• Attorneys' expenses: To be presented to the court at a later date
• Service award to Plaintiff: $10,000
• Payments to approved claimants: Remaining settlement funds after deductions

Important dates

• Fairness Hearing: July 24, 2025
• Deadline to File a Claim: June 9, 2025

When is the Sutter Health class action lawsuit payout date?

The final hearing will take place on July 24, 2025. Payments will be issued after the court grants final approval and all appeals are resolved.

Understanding the Sutter Health anesthesia billing lawsuit

This lawsuit was initiated due to allegations that Sutter Health improperly billed self-funded payers for anesthesia services. The plaintiff argued that Sutter Health's billing practices were misleading, fraudulent, and unfair.

Sutter Health denies any wrongdoing but agreed to settle to avoid the expense of a possible trial.

Sources

1. Official Settlement Website FAQ Page
2. Class Notice
3. Settlement Agreement Documents