California reached a settlement with Cedars-Sinai Health System and Huntington Hospital after the hospitals challenged affiliation conditions proposed by the state, according to Pasadena Now.
In court documents filed by the state's attorney general's office July 19, California agreed to settle the hospitals' objections to competition conditions. One of the conditions was a price cap on Pasadena, Calif.-based Huntington's negotiated rates with insurers, and another was a condition that would have given insurers a leg up in negotiations with Huntington and Los Angeles-based Cedars-Sinai, according to Pasadena Now.
In a lawsuit filed March 30 against the California Department of Justice and the Office of the Attorney General, the hospitals argued the conditions would have put Huntington at a disadvantage compared to area hospitals.
Attorneys will ask a state judge July 20 to cancel a trial slated for July 29 and to replace the old affiliation conditions with revised ones, according to the report.