Bay Area Nonprofit Health Group Accused of Skimming Millions of Dollars

A Marin County, Calif., hospital took a nonprofit health organization to court Thursday, saying it had illegally pocketed $120-million, the Associated Press writes.

Marin General Hospital Corporation says Sutter Health, a network of doctors, clinics, and hospitals with revenue of $8.8-billion, took an average of $30-million a year from the medical center from 2006, when the two parties settled a dispute over control of the hospital, to this year, when Sutter Health formally returned Marin General to a publicly elected board.

Previous payments from Marin General to Sutter Health, which had leased the hospital for 14 years, were about $3-million annually, according to the suit.

A Sutter Health spokeswoman said there was “no basis” for the legal complaint and that the organization had spent “above and beyond” what was required before the transition happened.

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