Case Description
Plaintiff State sought to block the merger of two hospitals in the East Bay area. The Attorney General’s investigation concluded the Sutter-Summit merger would create an unacceptable concentration of hospital ownership in one health care organization. Among other things, the two medical centers would be under a single board of directors controlled by Sutter, which operates another neighboring hospital. Such domination of hospital services could result in increased prices, cut back in services and reduced choices for patients either directly or through their health care plans, without fear of losing business to competitors. Court denied injunction and merger went forward.