US hospitals sued in class action over nurse pay

CHICAGO, June 21 (Reuters) Nurses backed by the biggest US health-care union on Tuesday filed four class-action lawsuits against some of the biggest US hospitals, including No 1 chain HCA Inc, claiming they conspired to depress wages for nurses amid a national shortage.

The lawsuits, which also target the biggest US Catholic hospital system, Ascension Health, charge yesterday that the hospitals regularly discussed nurses' wages in meetings, over the telephone and in written surveys, in an effort to coordinate and suppress pay.

The suits, filed in federal courts in Chicago; Memphis, Tennessee; Albany, New York; and San Antonio, Texas, seek back compensation and legal costs totaling ''hundreds of millions of dollars'' under federal antitrust laws.

''We have HR (human resources) employees calling their counterparts at competitor hospitals, asking for and receiving detailed and current information about the wages these hospitals are paying their nurses,'' said Daniel Small, a partner at the law firm representing the plaintiffs, which are seeking class-action status.

''The hospitals have reached an understanding that they will use this information not to compete,'' Small said.

Information from the Service Employees International Union, which organizes nurses and other health-care workers, led to the investigations and the lawsuits.

Lawyers for the plaintiffs interviewed dozens of current and former hospital employees in each market, including some at the executive level, in preparing the suits that were filed against about 20 unionized and non-unionized hospital systems in the four cities.

Spokesmen for the American Hospital Association, which represents most US hospitals, were not immediately available for comment.

A spokesman for Nashville, Tennessee-based HCA, which runs 180 hospitals and was named in the Texas lawsuit, was not immediately available for comment.

Other major hospital systems named in the suits include Catholic Health East, university-affiliated University of Chicago hospitals and Evanston Northwestern Healthcare, and privately held Vanguard Health Systems.

Demand for full-time registered nurses exceeds supply by nearly 170,000 nurses this year, according to the American Hospital Association. That shortfall is expected to widen to more than 1 million by 2020, the trade group estimates.

Wage increases for nurses have been insignificant during the decade-long shortage, experts said. Wages stagnated in 2003 and then fell 6.4 per cent in 2004, leading to a decline in nurses working at hospitals, according to the Institute for Women's Policy Research.

Experts disagree on how to resolve the nursing shortage. Some say higher wages are the key, while others note that heavy workloads, lack of respect, and understaffed hospital environments make the career unattractive.

REUTERS SY BD0948