Sutter/CPMC Found Guilty of Illegal Price-Gouging on Healthcare Benefits to Their Nurses

Hospital Chain Must Reimburse CNA RNs for All Illegally Charged Premiums and Rescind Rate Hikes Immediately

Registered nurses employed by Sutter Health’s California Pacific Medical Center won a legal victory on Monday as an arbitrator ruled that the hospital chain illegally violated the terms of their contract by unilaterally raising fees and co-pays on healthcare benefits, the California Nurses Association announces today.  The arbitrator ordered CPMC to roll back all changes imposed since January 2007, and to reimburse the nurses for the increases, which could run into the millions of dollars.

Evidence presented during the arbitration showed that CPMC reduced nurses’ access to care by raising co-pays, prescription drug costs, co-insurance costs, and hospitalization co-pays by up to  43 percent in some cases, and from $0 to $250 in others.  The hospital chain argued before the arbitrator that such changes did not have a “material” affect on the benefit, a claim that was dismissed in the ruling.  CPMC announced these changes in a November 2006 letter which was not sent to union representatives and which directly contradicted the nurses’ contract.

“Sutter Health and CPMC made record profits of $587 million  in 2006 but continue their efforts to cut back the healthcare and retirement benefits of their nurses, both through illegal maneuvers like this one and at the bargaining table.  RNs are united in their belief that they deserve a fair healthcare package—and fair treatment by Sutter,” said Bonnie Castillo, RN, Sutter division director.

4,000 RNs at 8 different Sutter facilities around the Bay Area are preparing to strike the chain for ten days, beginning this Friday, with healthcare and retirement benefits a major flashpoint at many of the facilities.  Nurses at every facility are also fighting Sutter’s attempts to short-change patient care, such as by understaffing units when nurses are on legally-mandated meal or rest breaks.

Sutter hospitals affected are St. Luke’s Hospital and California Pacific Medical Center in San Francisco, San Leandro Hospital, Alta Bates-Summit Medical Center in Berkeley and Oakland, Mills-Peninsula Health Services in Burlingame and San Mateo, Eden Medical Center in Castro Valley, San Leandro Hospital, Sutter Delta in Antioch, and Sutter Solano in Vallejo.