Workers lead push for community guarantees before potential Allina, North Memorial sales

Health care workers line the entrance to a public hearing in St. Paul on the proposed Sutter-Allina sale.

Unionized healthcare workers are leading a campaign to secure binding commitments from two large, out-of-state health care systems looking to expand their reach in Minnesota, seeking guarantees around patient access, workplace standards, use of artificial intelligence and other issues.

A coalition of labor, faith-based and community organizations want so-called “community benefits agreements,” or CBAs, in place before two proposed acquisitions that, if approved by the state, would reshape the local healthcare sector: Sutter Health’s takeover of Allina Health and Sanford’s acquisition of North Memorial.

Advocates made the case for CBAs at public hearings last month held by Attorney General Keith Ellison, after their efforts to engage directly with executives at Sutter and Sanford stalled.

Wanda Malden, a member of the faith group ISAIAH, said executives at California-based Sutter Health appeared not to take workers and patients’ request for a CBA seriously.

“We sent them a letter last week, and just this weekend they wrote back a letter that said, basically, that we should trust them,” Malden said outside Ellison’s July 13 hearing into the Sutter-Allina deal in St. Paul.

But several current Sutter workers, who traveled from northern California to Minnesota for the hearing, warned union and community members here to be cautious with their trust. Sarah Pineda, a surgery scheduler and member of the Service Employees (SEIU-UHW), said her union sees “daily violations” of their contract at Sutter’s eight unionized facilities.

“This is a giant that you are going to be battling,” Pineda told Minnesota workers. “It is very important that you guys get that community benefits agreement because you are going to need it.”

Sutter Health worker Sarah Pineda traveled from northern California to attend the hearing.

Legislation passed in 2023 gives the Attorney General’s Office authority to block large sales or mergers of healthcare systems if it determines the transaction is “contrary to the public interest.”

The easiest way Sutter and Sanford can allay doubts that their expansion plans are in the public interest, union members said, is by signing onto CBAs.

“Union workers know that words don’t mean anything until they are written down and agreed upon by both sides, which is all we are asking for,” SEIU Healthcare Minnesota and Iowa member Kia Pulle said.

Advocates said CBAs are rare in the healthcare sector but have been used in publicly funded developments like stadiums. With mergers and consolidation on the rise in the industry – and with data suggesting the result is often higher costs, lower quality of care and reductions in service – CBAs offer a voice in the process to those too often left out.

Dr. Matt Hoffman, a member of Doctors Council SEIU who practices at Allina’s clinic in Vadnais Heights, called on Sutter to negotiate a CBA that guarantees it won’t “jack up prices.” He said it should also protect quality patient care, safeguard union rights and benefits, and deliver meaningful investment in the community – instead of closing more birthing centers, clinics and hospital wards in the Allina system.

“If a California company is coming to our town to run our health care, at the very least we need a signed, guaranteed community benefits agreement that will make sure every Minnesotan has access to excellent, affordable health care,” Hoffman added.

South Dakota-based Sanford Health, meanwhile, has made some commitments in advance of its proposed acquisition of North Memorial, which employs over 6,500 people at two hospitals and several clinics in the Minneapolis suburbs.

Sanford signed a letter of understanding with the Minnesota Nurses Association covering members at North Memorial’s long-unionized Robbinsdale hospital to protect their contract and pension benefits. Sanford also agreed to honor a contract at the Maple Grove hospital, where nearly 600 nurses voted to unionize last year but are still bargaining a first contract.

Allina nurse Karen Norman urged Sutter to reach a similar agreement with MNA and other unions – but also to work toward a CBA that protects all workers and patients.

“Minnesotans deserve health systems that realize serving patients and communities is more important than serving corporate bottom lines and bloated bonuses,” Norman said.

– Michael Moore, UA editor

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