$11M Sutter Health Settlement Resolves Class Action Lawsuit Over Anesthesia Service Bills

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Sutter Health has agreed to pay an $11 million settlement to resolve a class action lawsuit that claimed the Northern California-based healthcare system unlawfully overcharged self-funded payers for anesthesia services.

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The court-approved website for the Sutter class action settlement can be found at SutterAnesthesiaBillingLawsuit.com.

The Sutter Health settlement covers all self-funded payers that were citizens of California on January 6, 2015, or are state or local governmental entities of California, that compensated Sutter Health for any anesthesia services, other than conscious sedation, administered in the healthcare network’s operating rooms at acute care hospitals at any time between January 1, 2003 to December 31, 2013.

According to the Sutter Health settlement website, self-funded payers include entities such as employers, unions or healthcare benefits trusts whose health plan funds are used to pay the medical expenses of employees or members.

“You are not a self-funded payer if you are an individual,” the website specifies.

To receive a pro-rated share of the $11 million settlement fund, eligible class members must submit a valid claim form online or by mail by June 9, 2025.

A Sutter Health settlement claim form can be submitted online on this page. Alternatively, class members may download and print out a PDF claim form to return by mail or fill out and return the paper copy enclosed in the settlement notice issued about the deal.

Each class member’s unique ID number is required to submit a claim form online. This information can be found on the settlement notice.

The settlement fund, after the payment of attorneys’ fees, administrative expenses and service awards, will be distributed based on the total number listed on a class member’s claim form of annual active participants in their health plan in California between 2003 and 2013, the settlement agreement says.

If a class member does not have information regarding the number of active California participants for a particular year within that range, they may still file a claim form with data for the years they have, though calculations will be based only on the participants listed, the agreement adds.

The deal with Sutter Health received preliminary court approval on March 11, 2025. It is now up to the court to decide whether to grant final approval to the terms of the settlement at a hearing scheduled for July 24, 2025.

Settlement payment checks will be issued to eligible class members only if the deal receives ultimate court approval, and after any appeals are resolved.

According to the Sutter Health class action lawsuit, the defendants—including Sutter Health, Sutter Bay Hospitals, Sutter Valley Hospitals, MarinHealth Medical Center, Sutter Coast Hospital, Sutter Bay Medical Foundation and Sutter Valley Medical Foundation—engaged in unfair and unlawful billing practices with respect to their anesthesia services.

The class action suit claimed the healthcare system at times double-billed for these services, described them in a misleading way or billed for services that had not actually been performed. As a result, payers were charged more than they should have been, the case contended.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.