This story comes from a February 26 article in the Sacramento Bee.
SAN JOSE, California — The owners of six nonprofit Catholic hospitals filed a lawsuit accusing a labor union of trying to sabotage their attempt to sell the hospitals to a for-profit corporation.
Daughters of Charity Health System claims in its suit that the Service Employees International Union and its United Healthcare Workers West affiliate have cost their hospitals tens of millions of dollars, the San Francisco Chronicle reported Wednesday.
The lawsuit says the workers at the hospitals in the Los Angeles and San Francisco Bay areas have delayed the sale by pressuring potential bidders to drop out, driving the price down.
The hospital chain filed the suit Monday in Santa Clara County Superior Court, seeking unspecified damages for its losses and punitive damages.
Last week, Attorney General Kamala Harris approved the sale of the hospitals to Prime Healthcare Services Inc., while imposing conditions that could unravel the deal.
The hospitals are struggling financially, and a union representing workers is concerned Prime will shut some or all of them. Under its purchase agreement, Prime promised to keep them operating at least five years.
But Harris’ decision requires Prime to operate five of the six for at least 10 years, and imposes other conditions to ensure continued community access to essential healthcare services, her office said.