Bay Area
California Attorney Genera Details ‘Historic’ Settlement in Sutter Health Antitrust Case

Sutter Health will pay $575 million to settle a closely watched antitrust case filed by California Attorney General Xavier Becerra, whose office had accused the nonprofit health care giant of using its market dominance in Northern California to illegally drive up prices.
Under terms of the agreement, Sutter will continue to operate as an integrated system. But it has agreed to end a host of practices that Becerra alleged unfairly stifled competition, including all-or-nothing contracting deals demanding that an insurer that wanted to include any one of the Sutter hospitals or clinics in its network must include all of them — even if some of those facilities were more expensive than a competitor.
The agreement includes the appointment of a jointly approved special monitor who will be charged with ensuring that Sutter is following the terms of the agreement for at least the next 10 years.
Becerra announced details of the settlement, which he termed “historic,” at a news conference in Sacramento on Friday.
“When one health care provider can dominate the market, those who shoulder the cost of care — patients, employers, insurers — are the biggest losers,” Becerra said. “Today’s settlement will be a game-changer for restoring competition in our healthcare markets.
The terms of the agreement are subject to approval by San Francisco Superior Court Judge Anne-Christine Massullo, who is expected to rule preliminarily on the agreement in February.
Among other terms, the settlement requires Sutter to:
• Limit what it charges patients for out-of-network services
• Increase transparency by allowing insurers and employers to give patients pricing information
• Cease bundling services and products, and instead offer stand-alone pricing
The case is expected to have nationwide implications on how hospital systems negotiate prices with insurers.
While a settlement does not set a legal precedent, “it is strong guidance that the kinds of behavior Sutter engaged in are not going to be allowed going forward,” said Jaime King, associate dean and a professor of law at UC Hastings College of the Law. “This really opens the door for attorneys general in other states to begin examining their own health systems for similar behaviors.”
Sutter stood accused of violating California’s antitrust laws by using its market power to drive up prices. Health care costs in Northern California, where Sutter is dominant, are 20 percent to 30 percent higher than in Southern California, even after adjusting for cost of living, according to a 2018 study from the Nicholas C. Petris Center at the University of California-Berkeley that was cited in the complaint.
The case was a massive undertaking, encompassing years of work and millions of pages of documents. Had the plaintiffs prevailed in court, Sutter might have faced damages of up to $2.7 billion.
In agreeing to the terms, Sutter did not admit wrongdoing. In a statement, General Counsel Flo Di Benedetto described Sutter’s care as “affordable” and “high quality.” She also noted that Sutter had invested nearly $10 billion in new technologies and state-of-the-art facilities over the past decade.
“As an organization, we will have to evaluate future capital investments based on the impact of the settlement,” Di Benedetto said. “Despite the increasing cost of care and operating in high-wage markets, we remain focused on making healthcare more affordable for our patients.”
The case initially was filed as a class-action lawsuit in 2014 by the United Food and Commercial Workers International Union & Employers Benefit Trust (UEBT), representing multiple employers, unions and local governments whose workers use Sutter services.
Becerra’s office joined the case in 2018.
“Our settlement with Sutter represents an extraordinary result for working people, their employers, and every Californian who has struggled with the high cost of healthcare,” UEBT Chair Jacques Loveall said in a statement. The $575 million in damages will be distributed among the self-funded employers and union trusts that brought the case, to defray overcharges they argued they paid Sutter for worker health care.
Sutter has 24 hospitals, 34 surgery centers and 5,500 physicians across Northern California, with $13 billion in operating revenue in 2018. The state’s lawsuit alleged Sutter has aggressively bought up hospitals and physician practices throughout the Bay Area and Northern California and exploited that market dominance for profit.
Sutter Health consistently denied the allegations, saying its large, integrated health system offers tangible benefits for patients, including more seamless, high-quality care and increased access for residents in rural areas. Sutter also disputed that its prices are higher than other major health care providers, saying its internal analyses tell a different story.
Bay Area
Oakland Tech Girls Basketball Team Wins CIF Division 1 Girls’ Championship
Hundreds of fans packed into the Golden 1 Center in Sacramento on Friday, March 10 for the California Interstate Federation (CIF) Division 1 Girls Basketball Championship between Oakland Technical High School and Santiago High from Corona near Riverside. Oakland Tech’s Bulldogs clearly also wanted the championship more, although their game was more of a struggle for three quarters. They were down one point at the end of the first quarter, up by seven points at the half and at the end of the third quarter. But in the fourth, the team poured it on, outscoring Santiago 23-7. The final score was 75-52.

By Carla Thomas
Hundreds of fans packed into the Golden 1 Center in Sacramento on Friday, March 10 for the California Interstate Federation (CIF) Division 1 Girls Basketball Championship between Oakland Technical High School and Santiago High from Corona near Riverside.
Oakland Tech’s Bulldogs clearly also wanted the championship more, although their game was more of a struggle for three quarters. They were down one point at the end of the first quarter, up by seven points at the half and at the end of the third quarter. But in the fourth, the team poured it on, outscoring Santiago 23-7. The final score was 75-52.
“It’s history, we made history and we never lost,” said senior guard Erin Sellers who scored 14 points with one assist. “I think it’s really because everyone said we couldn’t. They said we couldn’t play with a D-1 team, but not only did we play with them, we blew most of them out, and we got it done.”
“It means everything,” said senior guard Mari Somvichian who scored seven points and had two assists. “I mean, to come in as a freshman and literally never lose a playoff game, is crazy. We’ve won three — well, I would say two and a half.”
(In 2020, the team was scheduled to play in their state championship game, but the day before the game, the CIF shut down all athletics because of the pandemic.)
“We’ve literally never lost, and to go out our senior year, our last game being a Division-1 State Championship, you really could not write it better.”
“It’s us. It’s not what the other team is doing,” said head coach Leroy Hurt about how his team accomplished their goal. “And I’m just so proud of these kids. You guys just don’t know. It was an emotional roller coaster. Every game was a huge game…And to win Division 1—I didn’t see it coming. I just knew we were going to be a tough out. And if we lost, some team was going to have to come beat us.”
Oakland had the biggest and loudest contingent of fans, and at one point during the Oakland Tech game, the fans were doing their signature “O.T.” chant, and even got fans from Livermore — who were there to cheer on Granada High in a later game — to join in the chant.
Oakland Tech graduate and former San Francisco 49ers quarterback Josh Johnson sat courtside to watch the games and cheer on his daughter, Jhai Johnson, who plays for Tech. He was beaming with pride after Tech sealed the victory.
“This is a proud father moment. This is a blessing from God to be able to watch your child play this game, and see her get this experience…But also, this is for Oakland, this is huge. So, to see us getting back to the prestige we belong to, this is what we deserve,” Johnson said.
Board of Education District 1 Director Benjamin (Sam) Davis was thrilled to attend. “I had such a blast, after a heavy week of work, to get to watch these two (Oakland High Boys Basketball team won the state championship the same night), top notch teams play from courtside was unforgettable…They were amazing wins. They extended the dynasty of our Bulldogs Girls team, so meaningful for seniors who won titles through the pandemic and brought it home yet again.”
Bay Area
Attorney General’s Office Denies Helping Holy Names University Sell Campus, Contrary to HNU’s Claims
In a recent letter to City of Oakland officials, Jeanine Hawk, HNU’s vice president for finance and administration, claimed that the university has been working closely with Bonta’s office and that the university’s decision to sell the property to the highest bidder is based on and guided by discussions with the Attorney General’s Office.

“Our office has not provided HNU with direction, approval or guidance,” said AG’s office”
By Ken Epstein
Holy Names University in Oakland continues to be not transparent or truthful with the public and Oakland officials in its claims that HNU is acting with the approval and guidance of the office of California Attorney General Rob Bonta to sell the 60-acre campus in the Oakland hills for high-end residential development when the campus permanently closes, currently scheduled for the end of the current semester in May.

Jeanine Hawk, HNU’s vice president for finance.
In a recent letter to City of Oakland officials, Jeanine Hawk, HNU’s vice president for finance and administration, claimed that the university has been working closely with Bonta’s office and that the university’s decision to sell the property to the highest bidder is based on and guided by discussions with the Attorney General’s Office.
“HNU has been in constant communication with the California Attorney General’s office regarding the manner of ensuring that any transfer of its property satisfies the requirements of California law,” Hawk said.
Further, she alleged that “discussions with the Attorney General’s office have resulted in an effort to market the property both through a real estate broker (Mike Taquino at CBRE) and through our continued communications with potential successor universities.”
Hawk also dismissed the City of Oakland’s offer to help maintain HNU as a center of higher education. “At this point it is unclear to HNU how the City of Oakland can assist with the process of achieving the objectives of obtaining the highest and best use of the HNU property for public good, particularly when HNU’s efforts to date have been in cooperation with the AG’s office,” she said.

Chief Deputy Attorney General Venus D. Johnson
However, in a strongly worded denial, Venus D. Johnson, Chief Deputy Attorney General in AG Bonta’s office, wrote in a March 17 letter to Oakland officials, “While HNU has kept the Attorney General’s Office apprised as to its efforts to secure a successor educational institution, our office has not provided HNU with direction, approval or guidance with regard to these efforts.”
“Any assertion to the contrary is inaccurate,” Johnson wrote.
“Specifically, although HNU has reported to you that this office has told HNU that it must sell to the highest bidder and that we have provided HNU with direction related to its marketing efforts, the Attorney General’s Office has done neither of these things,” according to Johnson’s letter.
Johnson emphasized that under the law the decision whether to sell the property is up to the HNU Board of Trustees. “A nonprofit corporation only needs approval from its board of directors to sell or transfer all or substantially all of its assets under terms the board deems is in the best interests of the corporation,” she said.
Johnson added that there are no legal reasons why HNU cannot work with a Historically Black College or University (HBCU) or other educational institution to maintain the campus as a center for higher education.
She wrote: “Let me be clear: HNU absolutely may consider entering into an agreement with a successor educational institution and continue to operate with an educational purpose and mission. While my office cannot require HNU to do this, neither can we prevent them from doing so: The decision is HNU’s and HNU’s alone.”
Several HNU students and an Oakland City Councilmember spoke this week about the potential for maintaining HNU as an institution of higher education on the “Education Today” program aired on radio station KPFA FM94.1.”
“There are a lot of unanswered questions: how did we get to this place?” Asked Aniya Bankston, chair of the HNU Black Student Union (BSU) and a pre-nursing student.
“There’s a very confusing time on campus, (and) anxiety is super high” among the students, she said.
Kiara Evans, a member of HNU student government and the also a BSU member, said she and other student leaders met with the HNU Board of Trustees, which she was disappointed to see was all white.
“They were very nonchalant,” said Evans. “Whatever we said, they just brushed us off. They didn’t really want to hear from us, and it’s pretty sad and disappointing that these people are in charge of our education. They’ve never even gotten to know us.”

Oakland District 4 Councilwoman Janani Ramachandran
City Councilmember Janani Ramashandran, who represents the area that includes the HNU campus, said she is working with other city leaders “to see this site used for higher education … not to follow the path of building luxury housing.”
“I’m cautiously optimistic,” she said. “It comes down to the will of the Holy Names board (to negotiate)” and some of the proposals for educational uses for the property.
In response to questions from the Oakland Post, HNU Vice President Hawk wrote:
“The AG wanted to emphasize that it does not direct organizations in these matters. The letter confirmed that HNU has been apprising the AG’s office of the current situation to share HNU’s proposed path forward and to make sure that HNU’s interpretation of applicable laws regarding the sale or transfer of property of a non-profit corporation will properly inform decision making by our Board of Trustees.”
Activism
How the Crack Cocaine Epidemic Led to Mass Sex Exploitation of Black People PART 3: The Case Against SB357: Black, Vulnerable and Trafficked
Although California Senate Bill 357 was intended to alleviate arrests of willing sex workers under anti-loitering laws, it opened up a Pandora’s box loophole that hinders the ability of law enforcement to halt human trafficking, especially of young Black and Brown girls. This segment continues to explore the history that led to this latest form of exploitation in Oakland.

By Tanya Dennis and Vanessa Russell
Although California Senate Bill 357 was intended to alleviate arrests of willing sex workers under anti-loitering laws, it opened up a Pandora’s box loophole that hinders the ability of law enforcement to halt human trafficking, especially of young Black and Brown girls. This segment continues to explore the history that led to this latest form of exploitation in Oakland.
It was 1980: The beginning of the end for the Black family and Black community as we knew it.
Crack cocaine was introduced to the United States that year and it rendered unparalleled devastation on Black folks. Crack is a solid smokable form of cocaine made by boiling baking soda, cocaine, and water into a rock that crackles when smoked.
The tremendous high — especially when first smoked — and the low cost brought temporary relief to the repeatedly and relentlessly traumatized members of the Black community.
What was unknown at the time was how highly addictive this form of cocaine would be and how harmful the ensuing impact on the Black family when the addicted Black mother was no longer a haven of safety for her children.
The form made it easy to mass produce and distribute, opening the market to anyone and everyone, including many Black men who viewed selling crack as their way out of poverty.
These two factors — addicted Black women and drug-dealing Black men — would lead to the street exploitation for sex as we know it today.
Encouraged to try it free initially, most poor, Black women in the 1980s used crack cocaine in a social setting with friends. When the free samples disappeared the drug dealer offered to supply the women crack in exchange for allowing him to sell their bodies to sex buyers.
The increase in the supply of women willing to exchange sex for crack — a.k.a. the “sex for crack barter system” — caused the price of sex to decrease and at the same time increased the demand for sex because more buyers could afford it.
The desperation of the women to get their hit of crack made them willing to endure any form of abuse and treatment from buyers during sex, including unprotected and violent sex.
It also pushed desperate Black women onto the street to pursue sex buyers, flagging down cars and willing to have sex anywhere actively and desperately. Street prostitution grew and buyers were able to buy oral sex for as little as $5.
This sex-for-crack barter system resulted in a dramatic increase in sexually transmitted diseases including HIV and AIDS, both of which are disproportionately represented among Black people.
It also resulted in unplanned pregnancies by unknown fathers, which then resulted in children born addicted to crack who were immediately placed in the foster care system where they were often abused and/or neglected.
For his part, the Black man who engaged in the mass production and distribution of crack was often killed by gun violence while fighting over drug territory or incarcerated for long periods of time as use and sales and distribution of crack carried longer sentences than powdered cocaine.
Crack unleashed an entire chain of new trauma upon the Black family which then all but collapsed under this latest social attack that had started with chattel slavery, followed by Jim Crow, redlining, school segregation, food deserts, et. al.
Exploitation was and is at the root of the crack cocaine epidemic. It is the latest weapon used to prey upon Black people since the beginning of our time in the United States.
The sex industry and legislation like SB357 have only increased harm to Black people who have been historically oppressed with racist laws and epidemics including crack. More must be done to restore the Black community.
Tanya Dennis serves on the Board of Oakland Frontline Healers (OFH) and series co-author Vanessa Russell of “Love Never Fails Us” and member of OFH.
https://www.researchgate.net/profile/Tanya-Leblanc/publication/236121038_Behind_the_Eight_Ball_Sex_for_Crack_Cocaine_Exchange_and_Poor_Black_Women/links/0c9605162c8f362553000000/Behind-the-Eight-Ball-Sex-for-Crack-Cocaine-Exchange-and-Poor-Black-Women.pdf?origin=publication_detail
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