Landmark union reaches agreement with 2 bidders, rejects third

WOONSOCKET – The union representing nearly 600 workers at Landmark Medical Center and the Rehabilitation Hospital of Rhode Island announced on Monday that they have reached contract agreements with two of the bidders for the financially troubled hospital, while rejecting an offer from a third.

On April 7, the membership of the Northern Rhode Island United Nurses & Allied Professionals, Local 5067, voted unanimously to reject the final offer for a new contract with RegionalCare Hospital Partners, one of the three Franklin, Tenn.-based for-profit hospital systems bidding for Landmark, according to Christopher Callaci, the union’s general counsel.

Previously, the union membership voted to accept contract offers from two for-profit bidders, Transition Healthcare of Franklin, Tenn., and Prime HealthCare Services of Ontario, Calif., according to Callaci.

A fourth bidder, Capella Healthcare of Franklin, Tenn., broke off negotiations with the union, Callaci said.

Public hearings are scheduled for April 14 and 15 before Superior Court Judge Michael A. Silverstein to consider the potential bids for the financially troubled Landmark Medical Center and its affiliate, the Rehabilitation Hospital.

In the contract negotiations with Prime Healthcare and Transition Healthcare, union employees have agreed to make additional concessions in order to keep both facilities open, Callaci said.

“We expect that there will be some loss of jobs and we’ve notified out members of that,” Callaci said. Under the negotiated contracts, Callaci continued, both Transition Healthcare and Prime HealthCare have agreed to recognize seniority when contemplating layoffs. “As a union, we made a lot of concessions to improve the bottom line of the purchaser,” said Callaci.

In rejecting RegionalCare’s proposed contract, one of the major reasons was the cost of health insurance. “Increases in deductibles, co-insurance payments, prescription co-pays, premium payments and elevated out of pocket maximums [would] expose employees to medical expenses ranging from $5,000 to over $25,000 per year,” Callaci said.

RegionalCare didn't understand the competitive nature of the health care labor market in Rhode Island, explained Jan Peso, president of Local 5067.

“If they don’t invest in the work force, they can’t retain and recruit the best and the brightest. They just can’t deliver on their promise to provide quality health care while driving skilled and experienced staff away,” Peso said.