By itself, this isn't such a big deal: A non-profit hospital system in upstate New York settles a class-action lawsuit brought by a couple of nurses for $1.25 million. Plaintiffs alleged that the hospitals conspired to artificially lower nurses' wages.
The Wall Street Journal reports that the settlement will be filed today at the U.S. District Court for the Northern District of New York. Another paper reports that the suit was duplicated in Detroit, Chicago, Memphis, & San Antonio.
I have previously written, in a related context, that federal anti-trust law should not apply to contracts between hospitals and health professionals. I think that this case confirms the flaw.
Generally speaking, I think anti-trust law is nonsensical. However, if it must exist, state anti-trust law should suffice in these cases. Hospitals and health professions are regulated by the states, so states' laws should respond to the consequences of that power. There is no reason to believe that federal anti-trust laws are superior, especially when these cases do not bleed across state lines.
On the other hand, the scope for lawyers' mischief-making is high. What benefit would it be to a hospital in Albany, NY, to conspire with hospitals in Memphis or Detroit to fix nurses' wages? Very little, surely, given that the conditions of work and cost of living, and even scope of practice of the profession, varies across regions.
On the other hand, what a jackpot for the lawyers if they can lead nurses nationwide on a fishing expedition! This appears to be the case, as Northeast Health has agreed to spill the beans on other hospitals, too.
Research and commentary from a former senior executive in the U.S. Department of Health & Human Services
No comments:
Post a Comment