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Sutter agrees to $46 million settlement in anesthesia billing case
Modern Healthcare

On the eve of trial, one of California’s largest hospital systems, Sacramento-based Sutter Health, agreed to pay $46 million and unveil its profit margins on anesthesia services in order to settle a lawsuit with the state insurance commissioner over inflated hospital bills.

Yet the billing practice at issue—charging for anesthesia services that critics say are already reflected on other bills—is common among California hospitals.

The state hospital association says as many as 90% of all hospitals in the state use the same billing method for anesthesia, though that’s likely to change following this week’s settlement.