Unionized nurses at Holy Family Hospital’s campuses in Haverhill and Methuen are accusing the new owners of violating the terms of their contracts by making “unilateral” changes to their health care coverage and other benefits.
Lawrence General Hospital formally took over ownership of the hospitals last week as part of the sale of bankrupt Steward Health Care System’s Massachusetts hospitals in a $28 million deal signed off on by a federal judge in Texas.
The sale was heralded by Gov. Maura Healey, health care leaders and local elected officials as a way to preserve jobs, improve working conditions and prevent the closure of the hospitals.
But the Massachusetts Nurses Association alleges that Lawrence General is violating the terms of the court-approved sale and collective bargaining agreements for registered nurses who work at Holy Family’s two campuses.
In an emergency motion, filed in U.S. Bankruptcy Court on Wednesday, the union alleges that LGH unilaterally imposed changes to the nurses’ health plans that will increase premiums, out-of-pocket costs and deductibles, and removed credits for uninsured members.
The hospital also required nurses at Holy Family to switch to a different, more costly type of retirement plan, and reduced coverage through its life insurance plans, according to the union, which estimates the changes will cost nurses thousands of dollars in lost wages.
“Unless immediately addressed, Lawrence’s improper actions will cause significant economic injury to MNA and its members by reducing benefits while imposing significantly higher costs, including increased deductibles and copays,” lawyers for the union wrote in the 91-page complaint.
The complaint asks the bankruptcy judge to declare the hospital in violation of the terms of the sale and require it to honor existing collective bargaining agreements with unionized nurses.
“We remain an active and engaged participant in discussions with the Massachusetts Nurses Association, just as we have from the outset,” a spokesperson from Lawrence General Hospital said in a statement. “The court filings will not impact or interrupt our ability to deliver high-quality, compassionate, and culturally competent care. We continue to work together with the MNA and all of our staff to meet the health care needs of our patients, their families, and the communities we serve.”
In the court filing, the union said shortly after the sale of Holy Family hospitals was announced in September nurses entered into negotiations with Lawrence General for new employment terms.
But the union said hospital officials rejected several offers and then “threatened” to impose the changes on nurses if they didn’t agree to the new terms. After the sale of the hospitals closed on Oct. 1, Lawrence General imposed the new employment terms by “fiat,” according to the complaint.
“Lawrence’s actions cannot be excused as inadvertent mistakes or transitional hiccups,” the union’s lawyers wrote. “Rather, they are its most recent attempt to impose significant economic changes on MNA-represented nurses.”
The Dallas-based Steward operated about 30 hospitals nationwide before it filed for bankruptcy protection earlier this year to pay down $9 billion in debt to its creditors.
In September, a federal judge approved plans to transfer ownership of several of Steward’s Massachusetts hospitals, including Holy Family, Morton Hospital in Taunton and St. Anne’s Hospital in Fall River. Morton and St. Anne’s were purchased by Lifespan, a Rhode Island-based company, a deal valued at more than $175 million.
The state took over a fifth Steward hospital — St. Elizabeth’s Hospital in Brighton — by eminent domain until Boston Medical Center takes it over as its new owner.
Steward closed its hospitals in Dorchester and Ayer at the end of August after failing to reach adequate terms with prospective buyers.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.