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Northern California Hospitals In Legal Battles -Marin General Files Lawsuit Against Sutter Health Alleging Money Siphoning

Posted Aug 26 2010 8:57am

Just a couple days ago Sutter was in the news relative to the rates they charge for imaging and comparing to other hospitals in northern California and now we add a lawsuit into the contested area of where money was spent too.

Sutter has a chain of 24 hospitals and various surgical centers so we have the small hospital battling a larger system here in court.  Smaller hospitals are finding it even more difficult today and the accounting portions here are being questioned which is all done with business intelligence software so when all this rolls out the smaller hospital could be at a disadvantage with information used in court to prove their case perhaps.  BD 

Marin General Hospital Corp. plans to file a lawsuit today against Sutter Health, accusing the hospital chain of improperly siphoning off $120 million from the medical center's accounts over the past four years.

The filing comes two months after Sutter returned management of Marin General Hospital to the local district board after a protracted dispute that ultimately broke Marin County 's largest hospital away from the health care provider.

"It was only when they (Sutter) knew they were going to give up the hospital in four years, it's only when they knew when they were going to compete with Marin General that they begin to siphon off the money ... to great excess," said attorney Jim Brosnahan, who is representing the hospital board. Sutter still runs Novato Community Hospital and has purchased land in San Rafael for future use.

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