While Sutter Health allegedly pressured payers to contract with its entire network, a Blue Shield executive said that payers also feared failure to reach an agreement would cause patients to leave for other insurers, according to a Feb. 22 Law360 report.
Tracy Barnes, a contract negotiator for Blue Shield of California, told the jury of the $411 million antitrust case that even a temporary disruption in maintaining Sutter Health's in-network status would result in a "fall out" from members.
"It was our view that Sutter was able to demand concessions that we normally wouldn't agree to just based on their market presence," Barnes said.
Barnes also testified that Sutter Health's market dominance in areas where provider competition was limited also fueled member demands that the system's in-network status was necessary.