hospital layoffs 2020 california


Glenn Melnick: That's right. Lesley Stahl: It's just Sutter hiking prices. And they do it because they can. The most recent report from the Bureau of Labor and Statistics showed the health care workforce lost 43,000 jobs in March 2020, but at that time this was primarily due to job losses in dental offices and private physician offices, not layoffs from large healthcare institutions. Gavin Newsom allowed hospitals to resume some elective surgeries, which is the bread and butter for many facilities. Sutter's quest to dominate the market, Attorney General Becerra says, began in the 1990s with a campaign of mergers and acquisitions that enabled it to grow from two hospitals into the behemoth it is today. “And we did that, we answered that call. In all, he says, the average cost of in-patient care in Northern California is 70% higher than in Southern California. It's happening across the country, the largest health systems are buying up everything. But this is, even at this stage, a landmark case because it pulled back the curtain on what has rarely been seen or so thoroughly documented before: how and why hospital prices have been skyrocketing. The Appeal-Democrat in Marysville told readers it … Lesley Stahl: When you did the investigation, did you look at other variables that might have been the reason for the higher prices? The hospitals have much in common. Last month, for instance, about 150 registered nurses in San Jose and San Diego were temporarily laid off because of department closures and the cancellation of elective procedures, Roberson said. This week, California hospitals are planning to ask the state for $1 billion before June 30 to help with immediate revenue losses, said Carmela Coyle, the CEO of the California Hospital Association. From March 1 to March 25, 139 companies in California reported laying off 18,998 employees. They are also blocked? They can reduce duplication and they can cut costs. The next year, they went up even faster. Elizabeth Mitchell: That's right. Till they amassed a conglomerate of 24 hospitals, 12,000 physicians, and a string of cancer, cardiac and other health care centers. She’ll be working partial hours until patient visits pick up again, she said. Let's push.". And their prices went up. The more hospitals they acquired, the more physicians they employed, the more leverage they had in the market. And they did this very strategically. Others may not be as fortunate. And the more we're paying on employee health care, the less we're paying on the toughest entrenched problems we're trying to fix in San Francisco. Most alarming, she says, hospitals across the country have been following Sutter's lead. Maybe equipment was better? We've got some facilities that are behaving the same way. Glenn Melnick: If Sutter is able to raise their prices by improving quality, value, and service, that's fine. “It is a weird dichotomy,” said Joanne Spetz, associate director of research at the Healthforce Center at the University of California, San Francisco. “My rationale is they’re going to go on unemployment, and then we turn around and pay someone else,” Wood said. California Sunday Magazine will go online only . Lesley Stahl: So here you have these giant companies. In the lawsuit, evidence showed that Sutter's quality of care, while well-regarded, was generally comparable to other hospitals in California, and that its higher prices have been contagious. Caring for a premature baby in Northern California, for example, costs about $605,000. They were just munching away, getting bigger and bigger. Cash-strapped hospitals lay off thousands of health workers despite COVID-19 staff shortages ... 2020 2:00PM (UTC) ... it would lay off at least 300 workers at a Detroit-area hospital … In late April, Gov. Palomar Health, which runs three medical centers in northern San Diego County, recently instituted 21-day temporary layoffs of 221 employees. – The new field hospital with 125 beds will help ease the burden on the local hospital system amid the growing COVID-19 Coronavirus crises. And so we can't comparison shop. In the midst of a public health crisis, Paulson and other healthcare workers are learning they aren’t immune to layoffs, furloughs and pay cuts. California finally acts to protect virus-threatened hospital workers California’s new goal is to COVID-test hospital workers. We emptied California’s hospitals to make way. On Wednesday, she returned to the San Ramon practice after her employer qualified for a Paycheck Protection Program loan. Adventist Health's other layoffs hit across the state, including at Adventist locations in Los Angeles and Northern California. Lesley Stahl: Do you think that this is the main reason that health costs are going up? Lesley Stahl: Wow. Layoffs involving excluded (supervisory, managerial, and confidential) employees and rank-and-file employees in nearly all bargaining units are based on the employees' total State service. It galls Hillary Ronen that Sutter is a not-for-profit company, meaning legally it pays no taxes even though it earned $13 billion in revenue last year. Good for them!". We asked Sutter for an interview, but the hospital declined and instead sent us a statement saying, in part, that it's committed "…to high-quality, affordable care…" and that its coordinated health care network "delivers healthier patient outcomes at a lower total cost of care," something that "…has proven even more critical during the COVID-19 pandemic.". Elizabeth Mitchell: And sometimes they would have to include hospitals that were in regions that the employers didn't even have employees in. A recent survey of more than 3,200 physicians by the California Medical Association, for example, found that 49% of practices have had to lay off or furlough staff. Lesley Stahl: Sutter says that when you have a system as big as theirs, what they can offer is coordinated care. That means canceling surgeries and procedures and more,” she said. Lesley Stahl: I actually heard that it costs more to deliver a baby here in Sacramento than anywhere else in the entire country. On Monday, David Lubarsky, CEO of UC Davis Health, alerted hospital employees that some of their colleagues had been infected. And the quality isn't increasing. She called her patients, many of whom followed her from her previous workplace, and told them she hoped to be back by June. According to the lawsuit, Sutter used its leverage to force the big companies and their insurers into what are called "all-or-nothing" contracts, meaning that they had to include all 24 of Sutter's hospitals in their health plans. The labor challenge for health systems, she said, is that not all positions transfer smoothly into surge preparedness. An injection of cash from the state could help hospitals avoid or reduce pay cuts and layoffs, she said. Hospitals have also asked that health insurance plans accelerate payments for claims within 30 days during the pandemic. On the eve of the trial, Sutter tentatively agreed to a settlement that's awaiting a judge's approval. So if an employer would try to exclude the system, they said, "Well, you can't do that because you have to have our maternity services. (Photo by Apu Gomes/AFP via Getty Images) This data is collected daily and the number of infected nurses and health care workers continues to … Someone else might look at it and say, "Wow, that's smart business. Hospitals Lose Money During Pandemic; Healthcare Workers Face Layoffs, Cut Hours Faced with lost revenue from canceled elective procedures, hospitals laid off … This week, California hospitals are planning to ask the state for $1 billion before June 30 to help with immediate revenue losses, said Carmela Coyle, the CEO of the California Hospital Association. Both are at medical schools and serve as regional safety nets. Very sophisticated. A nurse in a primary care office or one who specializes in orthopedic care, for example, perhaps wouldn’t be the best fit to care for a coronavirus patient on a ventilator, she explained. Why? Despite being the wealthiest state, California has a lower than average number of hospital beds. CalMatters is a nonprofit, nonpartisan media venture explaining California policies and politics. Sutter is a sprawling health care system that's the largest and most dominant provider in Northern California. Updated 4:53 pm EST, Thursday, December 17, 2020 Citing a revenue drop of 60 percent due to the COVID-19 pandemic, Rutland City, Vt.-based Rutland Regional Health System has furloughed 150 employees, according to WCAX. Glenn Melnick: They really pioneered this model of reducing competition to raise prices. Lesley Stahl: The insurance company, Blue Shield? Glenn Melnick: So we called it the "Sutter effect," where if you have a large, dominant system like this, they raise their prices high, all their competitors can raise their prices higher. An injection of cash from the state could help hospitals avoid or reduce pay cuts and layoffs, she said. Laying off and furloughing staff is a “recipe for disaster,” said Stephanie Roberson with the California Nurses Association. And they figured out, "Wow, this really works! The rest are being used to staff nursing homes that need temporary or emergency support. Meghan McCarty Carino Dec 31, 2020. It was all or nothing and no employer could do without all of the Sutter system. So--. The state's attorney general, Xavier Becerra, filed a civil lawsuit against Sutter in 2018. Xavier Becerra: They were gobbling up hospitals. So they have monopoly powers in a number of these counties, right? It is the largest driver of health care cost increases. Assemblyman Wood said he believes the pandemic is “going to be a breaking point for some offices and clinics.” He said he is concerned about the loss of primary care doctors, especially in rural districts like his that already struggle to attract and retain them. They were the first one to do it. (LAUGH). Elizabeth Mitchell: We have seen the data. And at one hospital alone they're avoiding $20 million a year. They merge and then they use their market leverage to increase prices. And you can't explain it away by the cost of living, cost of labor. Lesley Stahl: So who are some of these big companies? The layoffs are spread across over a dozen Adventist Health hospitals in California. Xavier Becerra: It's domination of the market. In Southern California: $343,000. Click here, Hospital Layoffs Rising in California as Few Elective Procedures Are Performed, New Data Shows How San Diego County Compares Nationally in the Pandemic, California Highway Patrol Placed on 'Tactical Alert' in Case of Violence Ahead of Inauguration, San Diego Residents 65+ Are Next in Line for Vaccine, But Supplies Still Limited, San Diego Leaders Plan for Quiet Inauguration Day, Remote Meetings, San Diego County Reports 2,695 COVID-19 Cases, 32 Deaths, Opinion: Santee’s Dustin Trotter Should Resign as Backer of D.C. Insurrectionists, MarketInk: Prolific Announcer Hangs Up Microphone After 2,000 Games Over 35 Years, First Vietnamese American Judge Joins San Diego’s 4th District Court of Appeal, San Diego Weekend Guide: Jan. 15-17 – MLK Day Edition, Governor Activates 1,000 California National Guard Troops to Protect State Capitol. Patient visits in the San Ramon office had gone down by almost 80% as the coronavirus outbreak kept people at home. And I'd say millions of Americans because I think you're gonna see other states take what we did and say, "Ah-hah. We interviewed him before the pandemic and before he was nominated for secretary of Health and Human Services. That they use their size to reduce their prices. Lesley Stahl: And there's one or two hospitals in a thousand square miles? We're not getting, you know, healthier people. Did you take all that into consideration? This bill would define “injury,” for a hospital employee who provides direct patient care in an acute care hospital, to include infectious diseases, cancer, diseases and musculoskeletal injuries, post-traumatic stress disorder, and respiratory diseases. COVID-19 cases top 200 at hospital as layoffs announced. “And that is because 60 percent of hospital spending is for labor,” she told lawmakers. Gavin Newsom announced the California’s Health Corps, whose members would tend to coronavirus patients in alternate care facilities. Lesley Stahl: Sutter's a not-for-profit hospital--. FILE - In this March 19, 2020, file photo, an employee walks near an entrance to Western State Hospital in Lakewood, Wash. As coronavirus cases top … But some hospitals, especially smaller ones or those in rural areas, are already in a deep hole. Martha Bellisle, Associated Press. >> Subscribe to Times of San Diego’s free daily email newsletter! And it was able to prevent Blue Shield from telling the city what Sutter's hospitals would charge for individual procedures. Elizabeth Mitchell: As an example, they control the maternity care. 02, 2020 This article has been updated to clarify that Stanford Health Care cook Sarah Jane Von Wettberg chose a … Currently, claims can take up to 90 days to process, but “we need to move those dollars more quickly,” Coyle said during an Assembly budget hearing last week. Hillary Ronen:  Sutter avoids tens of millions of dollars a year in local property taxes. It's happening in Texas. But that surge in anticipated volume hasn’t occurred and these facilities across the state remain mostly empty. “So you have furloughs happening in community health centers and in certain departments of hospitals, while at the same time there is concern about a surge and we’re hearing these calls for things like a health corps,” she said. Her organization has been protesting these layoffs. We're not getting better outcomes. But as of last week, UMass Memorial Medical Center … A group of Palomar Health employees lined the sidewalk along Pomerado Road in front of Palomar Medical Center Poway on Monday morning to object to a 21-day layoff of 221 district employees. And they could not control Sutter? And to pay its outgoing CEO $13 million in 2016, and a year later, paid its new CEO $6 million. They are just charging more for the same thing. In late March, Gov. What they came up with is a model that allowed them to acquire market power, and get higher prices without doing any of those good things for consumers. Hillary Ronen: Sutter won't allow us to see how much they charge for their services. © 2020 CBS Interactive Inc. All Rights Reserved. Xavier Becerra: Sutter got big enough that it could use its market power to dominate, to dictate. It’s an ironic twist to the pandemic: When the healthcare system seems to need workers the most, it can’t afford to keep them all. For once in their life the insurance company is not the worst actor in the room, it's Sutter. Xavier Becerra: Why Sacramento should be the most expensive place to have a baby-- there's no way to explain it. The state accused Sutter of using its "windfall" from its "excessive pricing" to finance the acquisition of new hospitals and physicians groups. An injection of cash from the state could help hospitals avoid or reduce pay cuts and layoffs, she said. “But as we begin to assess the damage, the toll is enormous.”. On Thursday, another union, SEIU-United Healthcare Workers West, will be protesting a 20% pay cut at Stanford Health Care. It's also expected to accelerate a wave of hospital mergers and acquisitions – with big hospitals buying up smaller ones. It is just the prices. ... 2020, 2:40pm PST Xavier Becerra: They're like the bully on the block. ", Lesley Stahl: Now they control the maternity care in Northern California--. Elizabeth Mitchell: They could not. With coronavirus spread, California layoff notices surge … They were gobbling up physicians through these physician practices. Democratic Assemblyman Jim Wood of Healdsburg said it makes more sense to look at laid off workers first for Health Corps jobs, rather than hire people who need to be retrained and recredentialed. That sentiment is shared by one of the state's largest labor unions, the United Food and Commercial Workers, as well as many of the state's large employers that belong to the Pacific Business Group on Health headed by CEO Elizabeth Mitchell. Lesley Stahl speaks with  Elizabeth Mitchell, California Privacy/Information We Collect. Sutter Health is in the midst of a lawsuit for business practices that drove up health care prices for Californians. Now providers and state lawmakers are searching for ways to keep hospitals, clinics and private practices afloat and its workers employed — or face the prospect of a deeper medical jobs shortage months or years from now. They were able to bully everyone else to conform; it was my way or the highway. Quality might have been better? Elizabeth Mitchell: Collectively our members spend $100 billion a year purchasing health care on behalf of 15 million Americans. The suit accuses Sutter of embarking on "…an intentional, and successful, strategy…" of cornering much of the market in Northern California, and then jacking up prices -- for example, on the price of delivering a baby. Elizabeth Mitchell: Walmart, Boeing, Cisco, Intel, really the biggest companies in the world. Xavier Becerra: This settlement is gonna change the life for hundreds of thousands of Californians. Hillary Ronen: That's right. Meanwhile, clinics and doctors’ offices continue to struggle with a drop in revenue as patients are advised to avoid non-emergency in-person visits. Support Times of San Diego's growthwith a small monthly contribution. injuries. So there's kind of this second-order effect: that this type of behavior leads to much higher prices across the board. Edited by Jorge J. García. And some of these counties are 1,000 square miles. Xavier Becerra: That's why this investigation took years, because you have to eliminate all the other reasons that might be out there. It-- it's unbelievable. Wow. Xavier Becerra: I think it's a game changer. Lesley Stahl: But what about this idea of coordinated care? A temporary hospital which is been settled up by members of the California National Guard is seen in Indio, California on March 29, 2020. And the prices continually grew faster and faster than other comparable hospitals. The problem is it has not been achieved in these mergers. But that applies only to his base … You think of them as being all-powerful. A spokeswoman, Melissa Tizon, said Dr. Hochman would take a voluntary pay cut of 50 percent for the rest of 2020. California Health Care Workers Test Positive In What Experts Predict Will Be ‘First Of Many’: Staff members of the UC Davis Medical Center, including one emergency room nurse, have tested positive for COVID-19. For the record: 5:41 PM, May. That's- that's really clever. Maureen Zeman was a registered nurse for 29 years at a hospital in San Jose, California, before she was laid off with dozens of other nurses – amid the coronavirus pandemic. Broadcast associate, Claire Fahy. Lesley Stahl: --which suggests that they're not out for financial gain. When Aimee Paulson, a nurse practitioner, learned in late March she was being temporarily laid off from the private family practice she’d worked at for the last three years, she was disappointed but not surprised. Elizabeth Mitchell: This is happening in Maine. Glenn Melnick is a health care economist at the University of Southern California who consulted on the lawsuit and was one of the first researchers to document Sutter's strategy of making itself indispensable. Elizabeth Mitchell: Coordinated care is what everybody wants. Blue Shield is as at the whim of Sutter naming its price as we are. Hiring is based on need and geography, according to the agency. Produced by Richard Bonin. It's hospital prices. May 26, 2020 Registered nurses at 15 HCA hospitals in six states will participate in actions Thursday and Friday to protest demands by the nation’s largest hospital chain for widespread layoffs and economic cuts that nurses say will also put patients in danger. Hillary Ronen:  Are added on top of that. Attorney general Becerra and Sutter are waiting to see if the tentative, out-of-court settlement they reached is approved. I think that was one of the reasons that these mergers were allowed to happen. Associate producers, Magalie Laguerre-Wilkinson and Mirella Brussani. Lesley Stahl: So you think this-- what you did'll become a model. 11 California employment law changes for 2020 Employers in the state may need to brush up on recent changes and prepare for those still to come. If so, Sutter will admit no wrongdoing, but will pay $575 million and agree to stop blocking patients' access to less expensive hospitals and requiring "all-or-nothing" contracts. There's a lawsuit over this in COVID-ravaged California, with the state attorney general claiming that Sutter Health, a hospital chain based in Sacramento, got so big it had essentially become a monopoly. He found, for instance, that in 11 counties of Northern California... Glenn Melnick: They're either the only one hospital, or one of two hospitals. ", Lesley Stahl: You might look at that and say, "That's monopolistic." This week, California hospitals are planning to ask the state for $1 billion before June 30 to help with immediate revenue losses, said Carmela Coyle, the CEO of the California Hospital Association. Lesley Stahl: I understand that the City and County of San Francisco spends roughly $800 million a year in health costs. Hillary Ronen: They are. Coyle said hospitals have done their best to keep their staff, but furloughs and layoffs have begun. It was abusing of its power. At the same time, hospitals have had to pour resources into protecting both its employees and incoming patients from COVID-19 infection, Ku said. An injection of cash from the state could help hospitals avoid or reduce pay cuts and layoffs, she said. Out of the approximately 94,000 people who have applied to the state’s backup medical reserve, 551 have been accepted into the program. And they're not providing more services. 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