Skip to main content

Sutter Health Fully Resolves False Claims Act Litigation Involving Medicare Advantage Claims

Sutter Health settled its remaining False Claims Act litigation over Medicare Advantage claims, entering a five-year Corporate Integrity Agreement with OIG.

by Sutter Health

SACRAMENTO, Calif. — Sutter Health today announced that it has entered into an agreement with the federal government and a private plaintiff to resolve a False Claims Act lawsuit filed in 2015 involving Medicare Advantage claims related to its medical foundation operations. The matter was partially resolved in April 2019 for $30 million (a fact not included by the U.S. Department of Justice (DOJ) in its press release regarding the settlement). Under the follow-on agreement announced today, Sutter will pay an additional $60 million (not $90 million) to fully resolve the litigation. The agreement makes clear that Sutter and its medical foundation affiliates admit no liability in agreeing to settle the matter.

As part of this resolution, Sutter has also concurrently entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG) of the U.S. Department of Health and Human Services. The CIA, Sutter’s first, is intended to promote compliance with federal healthcare program requirements over a period of five years and includes specific elements that must be in place and monitored.

Sutter’s Ethics and Compliance Services team is responsible for overseeing Sutter’s compliance with the CIA. Sutter looks forward to collaborating with OIG over the term of the agreement. In 2017, PricewaterhouseCoopers conducted a compliance program assessment finding Sutter’s program to be effective, with several areas identified as leading practices. Sutter has since maintained and enhanced these program elements and is well-prepared to implement the terms of the agreement.

Today’s agreements bring closure to a long-running dispute, allowing Sutter to avoid the uncertainty and further expense of protracted litigation, and enabling a constructive relationship with the government as we work together under the CIA.

Check your Vitals

Get the latest in health innovation, community impact and patient care from Sutter Health — delivered straight to your inbox.

You're leaving our site

The website you have selected is an external one located on another server. This website may contain links to third party sites. These links are provided for convenience purposes and are not under the control of Sutter Health. Do you wish to continue?