Judge Orders California’s Marin General to Settle With Sutter Health Over Merger

A  Superior Court judge has ordered Marin General Hospital in Greenbae, Calif., to settle with Sacramento, Calif.-based Sutter Health over millions of dollars Marin says it is owed after deciding to separate from Sutter four years ago, according to a San Francisco Business Times report.

In August, the 255-bed Marin filed a lawsuit with Marin County Superior Court alleging Sutter “systematically and improperly” took $120 million from the hospital treasury since 2006. https://www.beckershospitalreview.com/hospital-financial-and-business-news/californias-marin-general-hospital-to-file-suit-accusing-sutter-health-of-siphoning-120m.html

In 2006, the Marin General Hospital District agreed to separate from Sutter and signed a transfer and settlement agreement following conflict over management and investment strategies. In the lawsuit, Marin alleges that Sutter improperly transferred more than $30 million a year from reserves to the health system’s corporate accounts after discussions on how to handle the separation fell apart.

A Marin spokesperson said the hospital respects the judge’s decision concerning arbitration but disagrees with it, according to the report.

A Sutter spokesperson said the healthcare system appreciates the decision and expressed disappointment that the conflict continues, according to the report.

Read the San Francisco Business Times report on the settlement between Marin General Hospital and Sutter Health.

Read more about Sutter Health:

- Lawsuit Seeks to Block Development of Sutter Hospital

- Sonoma County to Approve Sutter's Newest Hospital Nine Years After First Proposal

- Non-Profit Hospitals and Health Systems With the Highest Moody's Ratings


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