Marin General Hospital in Greenbrae, Calif., was awarded $21.5 million from arbitration stemming from a dispute with Sacramento, Calif.-based Sutter Health, which formerly operated Marin General.
Arbitrator Rebecca Westerfield, a retired circuit court judge from Kentucky, ruled yesterday that Sutter must compensate Marin General for a breach of agreements related to physician recruitment, related to improper charges for the cost of capital and other specified costs. The lawsuit's main claim that Sutter inappropriately took profits before returning the hospital was denied by the arbitrator.
The controversy stems from the period of 2006 to 2010, when Sutter officials transferred about $30 million a year from the hospital to reinvest in other Sutter operations. Marin Healthcare District sued Sutter in 2010 after it regained control of the hospital.
Sutter pointed out that even though the arbitrator awarded the district a portion of its total $300 million claim, more than half of the award includes payment for overfunding the Marin General Hospital employee pension, which Sutter said "actually benefitted MGH employees."
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This article was corrected to reflect the following changes: An earlier version of the article said the settlement was related to Sutter's control of Marin General profits. The settlement was related to costs for physician recruitment, capital and other items.
Arbitrator Rebecca Westerfield, a retired circuit court judge from Kentucky, ruled yesterday that Sutter must compensate Marin General for a breach of agreements related to physician recruitment, related to improper charges for the cost of capital and other specified costs. The lawsuit's main claim that Sutter inappropriately took profits before returning the hospital was denied by the arbitrator.
The controversy stems from the period of 2006 to 2010, when Sutter officials transferred about $30 million a year from the hospital to reinvest in other Sutter operations. Marin Healthcare District sued Sutter in 2010 after it regained control of the hospital.
Sutter pointed out that even though the arbitrator awarded the district a portion of its total $300 million claim, more than half of the award includes payment for overfunding the Marin General Hospital employee pension, which Sutter said "actually benefitted MGH employees."
More Articles on Sutter Health and Marin General:
Judge Orders California’s Marin General to Settle With Sutter Health Over MergerCalifornia's Marin General Hospital to File Suit Accusing Sutter Health of Siphoning $120M
Sutter Health to Give Up Management of Marin General Hospital in California
This article was corrected to reflect the following changes: An earlier version of the article said the settlement was related to Sutter's control of Marin General profits. The settlement was related to costs for physician recruitment, capital and other items.