US hospitals sued in class action over nurse pay Tue Jun 20, 2006 05:55 PM ET
http://go.reuters.com/newsArticle.jhtml?type=topNews&storyID=12591278&src=rss/topNews By Kim Dixon CHICAGO (Reuters) - Nurses backed by the biggest U.S. health-care union on Tuesday filed four class-action lawsuits against some of the biggest U.S. hospitals, including No. 1 chain HCA Inc., claiming they conspired to depress wages for nurses amid a national shortage. The lawsuits, which also target the biggest U.S. Catholic hospital system, Ascension Health, charge the hospitals regularly discussed nurses' wages in meetings, over the telephone and in written surveys, in an effort to coordinate and suppress pay. The suits, filed in federal courts in Chicago; Memphis, Tennessee; Albany, New York; and San Antonio, Texas, seek back compensation and legal costs totaling "hundreds of millions of dollars" under federal antitrust laws. "We have HR (human resources) employees calling their counterparts at competitor hospitals, asking for and receiving detailed and current information about the wages these hospitals are paying their nurses," said Daniel Small, a partner at the Washington law firm representing the plaintiffs, which are seeking class-action status. "The hospitals have reached an understanding that they will use this information not to compete." Information from the Service Employees International Union, which organizes nurses and other health care workers, led to the investigations and the lawsuits. Lawyers for the plaintiffs interviewed dozens of current and former hospital employees in each market, including some at the executive level, in preparing the suits that were filed against about 20 unionized and non-unionized hospital systems in the four cities. Spokesmen for the American Hospital Association, which represents most U.S. hospitals, were not immediately available for comment. A spokesman for Nashville, Tennessee-based HCA, which runs 180 hospitals and was named in the Texas lawsuit, called the suit frivolous. "This is one of four frivolous money-wasting lawsuits apparently generated by a union and a law firm designed to create publicity in markets where unions are trying to get membership," said Jeff Prescott, a spokesperson for HCA. Other major hospital systems named in the suits include Catholic Health East, university-affiliated University of Chicago hospitals and Evanston Northwestern Healthcare and privately held Vanguard Health Systems. Demand for full-time registered nurses exceeds supply by nearly 170,000 nurses this year, according to the American Hospital Association. That shortfall is expected to widen to more than 1 million by 2020, the trade group estimates. FREE MARKET FORCES NOT WORKING Wage increases for nurses have been insignificant during the decade-long shortage, experts said. Wages stagnated in 2003 and then fell 6.4 percent in 2004, leading to a decline in nurses working at hospitals, according to the Institute for Women's Policy Research. Experts disagree on how to resolve the nursing shortage. Some say higher wages are the key, while others note that heavy workloads, lack of respect and understaffed hospital environments make the career unattractive. Massachusetts General Hospital physician and researcher Sreekanth Chaguturu, who said he could not comment on the lawsuit because he is not privy to the details, said the nursing shortage is more complex than the issue of wages. "Free market forces, which might have been expected to correct this shortage, have failed to do so for several reasons," he said. Chaguturu, who recently wrote an article in the New England Journal of Medicine on the subject, said those factors include what he called a perception that nurses have inadequate input into health care decision-making and lack of space in nursing schools to accommodate those interested in pursuing the profession. #33#
