Judge Orders CPMC/Sutter Health to Restore Illegally-Rescinded Healthcare Benefits

For Immediate Release August 6, 2009
Contact: Shum Preston, 510-273-2276 or Chuck Idelson, 510-273-2246

Major Ruling: Judge Orders CPMC/Sutter Health to Restore Illegally-Rescinded Healthcare Benefits

Registered nurses employed by Sutter Health’s California Pacific Medical Center (Sutter/CPMC) won a major victory over their employer, when a federal district court judge ruled that CPMC is compelled to restore health benefits retroactive to Jan. 1, 2007, the California Nurses Association/National Nurses Organizing Committee (CNA/NNOC) announced today. Several hundred RNs will receive the retroactive benefits.

Judge Charles Breyer ordered Sutter/CPMC to “restore the parties to the position they would have been at the expiration of the agreement [in 2007] had CPMC not breached the Collective Bargaining Agreement.” CPMC was twice directed during binding arbitration to restore the lawful health benefits, but ignored the orders, forcing CNA to seek court confirmation. Judge Breyer noted, “The difficulty in the current bargaining situation is partially the result of CPMC’s actions….The Court’s confirmation of the awards may affect the parties’ bargaining positions, but that is merely a consequence of CPMC’s failure to follow the arbitrator’s directive that it reinstate the CBA to the date it breached the agreement.”

Geri Jenkins, co-President of CNA, remarked, “Sutter/CPMC has a long history of acting above the law and disregarding its obligations, without regard for whether doing so harms its employees, taxpayers, neighbors, or patients. We applaud Judge Breyer’s order restoring healthcare to these registered nurses, and call on Sutter/CPMC to end its hostility towards its nurses.”

Arbitrator John Kagel found that CPMC reduced nurses’ access to care by raising co-pays, prescription drug costs, and hospitalization and insurance costs by up to 43 percent, and from nothing up to $250 in others. CPMC argued that such changes did not have a “material” effect on the benefit, which were imposed on all CPMC employees. This decision restores benefits for nurses protected by a union contract, who must now be reimbursed for all increased healthcare costs they have suffered.

Beth Langer, a 27-year nurse, says she spent 30 hours in bureaucratic paperwork to get back the almost $4,000 in reimbursements she is owed. “CPMC cut our benefits, and has made it difficult to get reimbursed for the costs my family has incurred. They’re hoping nurses will give up and they’ll get to keep all our money. Some nurses are forgoing care because of the added expense.”