SRMC Members Get Help

Wednesday, November 05, 2008

Labor Representative Cinamon Pitts helps SRMC RN Debra Belstad with her resume’

REDDING - As UPEC representatives continue their investigation in the SRMC firing, members are providing important information that will help the case that was filed last Thursday with the National Labor Relations Board. Business Manager Chris Darker is preparing case documents and evidence that will be reviewed next week in San Francisco. “Former SRMC CEO Phil Dionne all but admitted he purposely violated the union contracts with both UPEC Local 792 and the Service Employees International Union (SEIU)”, said Darker. SEIU filed their claim with the NLRB yesterday. Both International unions have been coordinating efforts this week aimed at SRMC and Prime Healthcare Services, Inc. UPEC believes both corporations have violated the WARN Act and National Labor Relations Act. “It’s not too late for PRIME to fix their problem with the unions but I don’t think they will anytime soon. It’s not like anyone will go to jail!”.

SRMC Crisis Update

Sunday, November 02, 2008

SRMC Crisis Update #1

REDDING - Union staff is working diligently to deal with the unexpected termination of approximately 450 UPEC-represented medical employees at the Shasta Regional Medical Center. 

This is what we have learned as of November 2nd, including information obtained from a meeting this date with an attorney from SRMC’s new owner, Prime Healthcare Management, Inc.  Please note that this information is accurate to the best of our ability as this date.  We will add and/or correct information as we get it.

a.Prime Healthcare Management, Inc. (PHM) has formed a subsidiary, Prime Healthcare Services Shasta LLC (PHSS) to operate SRMC.
b.PHSS has obtained a license to run SRMC and is considered the new owner of the operation effective November 1, 2008.
c.PHM or PHSS has a lease/option to purchase the land and physical facility.
d.All SRMC employees were terminated as of October 31, 2008.
e.UPEC has filed an Unfair Labor Practice charge with the federal government (NLRB) against SRMC and PHM regarding the terminations.
f.Selected employees were given applications to work for PHSS.
g.There may be no seniority-based layoff issue or rights because all employees were apparently laid off (terminated).
h.SRMC did not provide the required 2 weeks notice of termination or in lieu of such notice 2 weeks of severance pay as is required by contract.
i.SRMC did not provide longevity based severance pay as is required by policy.
j.Employee 401(k) accounts are intact although contributions have ceased effective October 31 2008 due to the mass termination. 
k.Health insurance for employees who are rehired by PHSS will continue with the current carriers at least until and unless PHSS changes plans in the future. 
l.The status of health insurance for employees not rehired by PHSS is unclear.  We will be seeking clarification from the insurance company and SRMC. 
m.PHSS has not yet recognized the Union as the representative for the two units we represent at SRMC (RN unit and LVN/Tech unit). 

UPEC’s Response

-We are consulting with our labor attorney regarding all possible legal claims against SRMC and/or PHSS regarding severance pay due, seniority issues, union recognition rights, etc.  We will follow counsel’s advice regarding filing grievances, lawsuits, unfair labor practice charges, etc.  This will be determined the week of November 3. 

-We have established a Member Help Center that will initially be staffed 9 am to 3 pm or by appointment Monday, November 3 through Thursday, November 6.

-We request all SRMC employees in the RN and LVN/Tech units come to the Union Office at 1860 Park Marina Drive or call at 245-1890 in order to open an individual case so that we can assist with any issues this termination and owner transition has caused.  Refreshments will be available so please stop by. We will assist with:

a. Verifying final paycheck accuracy and assisting with any needed corrections.
b. Filing grievances and/or claims as appropriate for each employee.
c. Assisting with insurance and financial advice referrals.
d. Providing our own in-house crisis counselor (on-site).
e. Clerical support for resume updating, copying, mailing and computer access.
f. Any issues or questions you give us to resolve.

Thank you for your attention to this update.  We sincerely hope you will use our services to assist you in this catastrophic situation.

Please be assured that this Union is committed to representing SRMC employees under the new owners and in assisting in any possible way those employees who are not employed by the new owners.  We did not step away from representing RMC employees when Tenet withheld dues deduction for three years and we will not step away now.
I invite your comments, idea’s and suggestions by clicking on “Comments” below.

SRMC Workers Fired

Saturday, November 01, 2008

REDDING - On the eve of the new management company taking over at SRMC, 150 workers were fired. Go to http://www.redding.com for the complete news story.

SRMC Remains Silent

Friday, October 31, 2008

REDDING - This is an update on SRMC as of 1:30 pm Friday, October 31, 2008. UPEC filed charges with the National Labor Relations Board (NLRB) yesterday after receiving the Prime Healthcare Services Press Release from the Record Searchlight. I prepared a statement and released it last night to the media. Six of us were at SRMC this morning beginning at 5:00am to distribute all the information we had and be available to the members. We have spent the morning continuing to call both SRMC Administration and Prime Healthcare Services. So far, neither have returned our calls from yesterday or today. I have contacted the International Union (LIUNA) and they are committed to provide assistance. Our legal team is up to speed and ready for action. It is our understanding of the Prime Healthcare Press Release that our members will be asked to re-apply for their jobs at SRMC. Our advice to you is APPLY!  We don’t know how many days or weeks the NLRB will take to resolve our charge against the hospital.  We don’t want you to jeopardize your income while the process takes its course. I am keeping local TV, Radio and Papers informed so they can help keep you informed. I want all of you to feel free to contact your union reps and myself at anytime 24/7 should you receive information from the hospital administration, be disciplined or terminated or be asked to do something unusual such as re-apply for your position. We want to stay on top of this situation. 

Corporate Bully Flys into Redding

Thursday, October 30, 2008

REDDING - The Union representing Nurses and Medical Technicians at Shasta Regional Medical Center announced that it has filed charges against SRMC with the Federal National Labor Relations Board over the announcement by the hospital’s new management team that it is terminating all employees. 

Business Manager and spokesman for the Union, Business Manager Chris Darker, stated, “We have a contract with SRMC that provides certain job security rules for the nurses and medical technicians.  Employees can only be terminated for improper behavior or laid off due to downsizing. They cannot be terminated and rehired simply to reduce employee pay and benefits to increase the profit margin for a new operator”.

The Union’s position is that SRMC can hire whatever firm they want to run the hospital, but the wages, benefits and due process for job security established in the Union contract cannot be changed by the new administration without going through a proper negotiation process.

Darker commented:  “The new manager, Prem Reddy, has no respect for this community if he thinks he can fly into Redding and fire hundreds of employees who financially support several thousand family members without batting an eye.  He may have gotten away with that in Southern California but Redding is a tight knit community that will not stand for slash and burn corporate tactics”.

The Union is concerned that the cut throat tactics of the new administrators will be the death of the long struggling hospital. 

“This is not what SRMC needs right now.  Who will want health care at a hospital that treats its professional staff this way and where the hospital manager has gone on the record stating that patients only deserve the amount of care they each can afford?”

SRMC under new Management

Wednesday, October 29, 2008

REDDING - A for-profit Southern California hospital company will take over management of Shasta Regional Medical Center. Prime Healthcare Systems, which owns 12 hospitals in Southern California, has signed a multi-year lease agreement to operate the 246-bed hospital, Prime’s Chief Executive Officer Lex Reddy said today. “We’re leasing the hospital with an option to buy”, Reddy said. “We can buy the hospital any time we want.” The agreement becomes effective Nov. 1. Reddy wouldn’t reveal the the specifics of the deal, citing confidentiality agreements with the hospital’s landlord. “You have to wonder, if they can buy it anytime then why not now, said Business Manager Chris Darker. 
Shasta Regional was listed for sale earlier this year with a $100 million sticker price. “We would like to keep the facility open and continue to provide the care for patients in the community” Reddy said. Reddy assured the hospital’s roughly 800 employees that payroll would be made on time Friday, which is payday. Patients won’t notice the change of ownership, Reddy said.
The announcement of the new leadership comes just days after the hospital’s landlord Birmingham, Ala.-based Medical Properties Trust forced SRMC’s parent company Hospital Partners of America from its leadership role. The North Carolina firm hadn’t paid its lease under its agreement MPT, so the trust had rights to remove them, Reddy said.Deals with various suitors including Catholic Healthcare West, the parent of SRMC’s competitor Mercy Medical Center, fell through, Reddy said. MPT, which also owns the land on which three of Prime’s hospitals sit, brought in representatives from Prime to see if the Southern California firm could keep the hospital open, Reddy said.
Another firm, Transition Healthcare Company, was in negotiations with MPT as late as last night, but the Chicago-firm was unable to broker a deal, Reddy said.
Last month, HPA filed for Chapter 11 bankruptcy after defaulting on the $60 million it owed MPT, which bought SRMC’s buildings and property in 2007. The real estate investment trust also bought HPA’s River Oaks facility in Houston, which closed this summer.
Reddy said the deal doesn’t need the approval of the bankruptcy judge holding control of HPA’s assets because the agreement deals specifically with MPT and the Shasta Regional sub-company. Prime bills itself as a progressive hospital company that buys up distressed hospitals and makes them profitable.The company was founded in 2001, by Indian-born cardiologist, Dr. Prem Reddy. Lex Reddy said he his the founder’s brother-in-law.
Prime has been the focus of some controversy in Southern California in recent years because the company is known for improving hospital’s finances by making them more efficient, according to the Los Angeles Business Journal and other press reports.
Such tactics include laying off administrators and other staff and axing outpatient medical procedures that aren’t making large profits.
The cuts drew cries of protests from local health care advocates and labor unions, according to the news reports. “My concern is that we don’t have much background on these folks”, said Chris Darker, the union representative for nurses and other health care workers at SRMC. “Are they going to come in and further downsize the hospital?’ Prime has $224 million in total assets, according to financial data from 2007 which was filed with MPT’s quarterly report from May.

The Redding Record Searchlight contributed this report.
Reporter Ryan Sabalow can be reached at 225-8344 or .
Reporter David Benda can be reached at 225-8219 or .