California Nurses Association Seeks Contempt Citation Against Sutter/CPMC for Defying Federal Court by Refusing to Restore Nurses’ Health Benefits

Sutter/CPMC Ignores Judge’s Order--$5,000/day Fine Requested

Federal Judge Charles Breyer today set an October 16th hearing date and ordered Sutter Healthcare’s California Pacific Medical Center (Sutter/CPMC) to show cause why it should not be adjudged to be in contempt of a July 30, 2009 court order that it restore healthcare benefits for nurses which have been illegally reduced since 2007.

Judge Breyer also ordered Sutter/CPMC to show cause why it should not be fined $5,000/day until it complies with his order.  The California Nurses Association this week asked the court to impose this fine to motivate Sutter/CPMC’s compliance with the order.  (According to documents filed earlier this week, Sutter/CPMC’s 2008 profits were $157,431,268)

“It’s frustrating for nurses to know that our contract protects our healthcare, and the arbitrator mandates it twice, and the federal judge orders it—but despite all this our employer refuses to provide us with the legally-guaranteed health coverage.  Sutter/CPMC has cut the benefits of nurses, but rather than fulfill their legal obligations is now threatening to impose an even worse health plan. Nurses are working for a corporation that disregards the law, its agreements, and its workers. How can they be trusted to hold up their end of any agreement about anything?” asked Jonica Brooks, an RN who was one of the nurses victimized by Sutter/CPMC.

Sutter/CPMC is currently moving ahead with a new plan for 2010 that reduces benefits and hikes costs even more than its current unlawfully-reduced plan. 

Judge Breyer in July 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.”  Sutter/CPMC was twice directed during binding arbitration to restore the lawful health benefits, but ignored the orders, forcing CNA to seek court confirmation. 

Arbitrator John Kagel found that Sutter/CPMC reduced nurses’ access to care by raising co-pays, prescription drug costs, hospitalization, and co-insurance costs by up to 43 percent, and up to $250 in other cases. Sutter/CPMC argued that such changes did not have a “material” effect on the benefit, which were imposed on all Sutter/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.

Deborah Burger, RN, co-president of CNA/NNOC, 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.”