Saini v. Sutter Health

CourtCalifornia Court of Appeal
DecidedJuly 8, 2022
DocketA162081
StatusPublished

This text of Saini v. Sutter Health (Saini v. Sutter Health) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saini v. Sutter Health, (Cal. Ct. App. 2022).

Opinion

Filed 6/17/22 Certified for Publication 7/8/22 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FOUR

DAR SAINI, Plaintiff and Appellant, A162081 v. SUTTER HEALTH, (Alameda County Super. Ct. No. RG19008395) Defendant and Respondent.

Plaintiff Dar Saini appeals a judgment entered after the trial court sustained without leave to amend the demurrer of defendant Sutter Health to plaintiff’s third amended complaint. The amended complaint alleges a violation of the Consumers Legal Remedies Act (CLRA) (Civ. Code,1 § 1750 et seq.) based on defendant’s failure to disclose, prior to providing emergency medical treatment, that its bill for emergency services would include an evaluation and management services fee (EMS Fee), by visibly posting “signage in or around defendant’s emergency rooms or at its registration windows/desks.” Plaintiff acknowledges that Division One of this court recently held that identical allegations do not state a cause of action under

1 All statutory references are to the Civil Code unless otherwise noted.

1 the CLRA. (Gray v. Dignity Health (2021) 70 Cal.App.5th 225 (Gray).)2 Plaintiff’s arguments that Gray was wrongly decided are not persuasive.3 Nor has plaintiff established that the trial court abused its discretion in denying further leave to amend. Accordingly, we shall affirm the judgment. Background Plaintiff’s original pleadings alleged causes of action for declaratory judgment, violation of the unfair competition law (UCL) (Bus. & Prof. Code, § 17200 et seq.), and violation of the CLRA. Following two successful demurrers by defendant, plaintiff filed a third amended complaint (hereafter complaint) eliminating the causes of action for declaratory judgment and violation of the UCL, and asserting a single cause of action for violation of section 1770, subdivisions (a)(5) and (a)(14) of the CLRA.4

2 After briefing was complete, the Fifth Appellate District issued Torres v. Adventist Health System/West (2022) 77 Cal.App.5th 500 affirming a judgment on the pleadings in favor of the defendant hospital on an identical claim, albeit on different grounds. (See fn. 8, post.) 3Plaintiff’s opening brief indicates that his attorney, who also represented Gray, had filed a petition for review and request for depublication of Gray with the California Supreme Court. Defendant’s request that we take judicial notice of the January 26, 2022, order denying that request is denied as unnecessary. 4 Section 1770 reads in relevant part: “(a) The unfair methods of competition and unfair or deceptive acts or practices listed in this subdivision undertaken by any person in a transaction intended to result or that results in the sale or lease of goods or services to any consumer are unlawful: [¶] . . . [¶] (5) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have. [¶] . . . [¶] (14) Representing that a transaction confers or involves rights, remedies, or obligations that it does not have or involve, or that are prohibited by law.”

2 The complaint alleges that in April 2016, after being treated at defendant’s emergency room, he was billed an EMS Fee in addition to the charges for individual items of service and treatment he received. His total charges of $4,593 (before discounts) included the undisclosed EMS Fee in the amount of $2,811. The complaint continues, “Plaintiff is informed and believes and thereon alleges that, unlike other items billed to emergency room patients, this [EMS Fee] is charged to emergency room patients simply for seeking treatment in the emergency room and is designed to cover ‘overhead’ and general operating and staffing expenses for operating an emergency room on a 24 hour basis. It is not like other individual billable items of treatment or services. Rather, it is . . . charged to every emergency room patient who presents and is treated at any one of defendant’s emergency rooms. Further, the fact that defendant intends to charge an EMS Fee to patients simply for being seen in the emergency room is not visibly posted on signage in or around defendant’s emergency rooms or at its registration windows/desks, where a patient would at least have the opportunity of knowing of its existence . . . .” Plaintiff alleges that patients “have a right to know about [the EMS Fee], and defendant owed/owes plaintiff and class members a corresponding duty to notify them of such fee in advance of providing treatment that triggers it.” The complaint emphasizes, “To be clear, the signage that plaintiff would deem sufficient to notify prospective emergency room patients would be a simple, inexpensive matter, and would be of immense benefit to consumers, who would greatly benefit from a simple, prominent sign placed in defendant’s emergency rooms.” California’s “Payers’ Bill of Rights,” Health and Safety Code section 1339.50 et seq., sets forth obligations California hospitals owe to consumers with respect to the pricing of medical services. Under the Payers’

3 Bill of Rights, California hospitals must publish on the hospital’s website or at the hospital itself a “charge description master” (chargemaster) listing the hospital’s uniform charges for its services. (Health & Saf. Code, § 1339.51, subds. (a)(1), (b)(1)5; see also 42 U.S.C. § 300gg-18(e) [Medicare participating hospitals must disclose, in addition to their chargemaster, a “list” of “standard charges” in accordance with guidelines promulgated by the Secretary of Health and Human Services.]; 45 C.F.R. § 180.60, subd. (a)(1); 84 Fed.Reg. 65524-01, 65564 [Medicare participating hospitals must “post standard charges for at least 300 shoppable services that can be planned in advance.”].) In addition, the Payers’ Bill of Rights requires the hospital to “post a clear and conspicuous notice in its emergency department” informing patients that the chargemaster is available for review and how it may be accessed. (Health & Saf. Code, § 1339.51, subd. (c).) Plaintiff’s complaint alleges that defendant complies with the above requirements by listing the EMS Fee in its chargemaster, which is published on defendant’s website. The complaint clarifies that plaintiff’s claim is “not that defendant fails to list an EMS Fee as a line item in its published chargemasters, or that defendant fails to list the price of such fees in its chargemasters.” (Fn. omitted.) But, the complaint further alleges, “the requirement for hospitals to post their chargemasters online . . . is not

5 Health and Safety Code section 1339.51, subdivisions (a) and (b) read in relevant part: “(a) . . . a hospital . . . shall make a written or electronic copy of its charge description master available, either by posting an electronic copy of the charge description master on the hospital’s Internet Website, or by making one written or electronic copy available at the hospital location. [¶] . . . [¶] (b) For purposes of this article, the following definitions shall apply: [¶] (1) ‘Charge description master’ means a uniform schedule of charges represented by the hospital as its gross billed charge for a given service or item, regardless of payer type.”

4 intended to and does not inform emergency room patients of a hospital’s intent to bill an [EMS] Fee for an emergency room visit, which is a matter that is not addressed by the requirements for online posting of the chargemaster.

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Bluebook (online)
Saini v. Sutter Health, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saini-v-sutter-health-calctapp-2022.