Kaiser Strike Could Have Significant Impact on Patient Care; Sign of Growing Frustration Among Healthcare Workers on Labor Conditions:

A potentially historic strike is on the horizon as more than 75,000 healthcare workers employed by the nation’s largest nonprofit healthcare provider, Kaiser Permanente, contemplate a mass walkout if their demands are not met by the end of the month. The coalition of unions representing these workers recently submitted a 10-day notice to company executives, signaling their intent to stage a three-day strike in protest of Kaiser’s alleged “unfair labor practices.”
This strike, if it materializes, is poised to become the largest-ever healthcare worker strike in the United States, dwarfing the 2018 strike by 53,000 University of California Medical Center workers. The affected facilities span multiple states, including California, Oregon, Washington, Colorado, Virginia, and Washington, D.C.
In aggregate, Kaiser operates 39 hospitals in multiple states with over 622 medical offices. Kaiser employs over 300,000 individuals with over 91,000 physicians and nurses serving 12.7 million members comprising over 4 percent of the U.S. insured population. Kaiser has annual operating revenue of almost $100 billion.
The key issues at the heart of this labor dispute revolve around Kaiser’s staffing policies. The unions accuse the healthcare provider of failing to respond to numerous staffing-related proposals, leading to a severe shortage of healthcare personnel. These proposals include measures to protect against outsourcing and subcontracting, as well as preserving pay-sharing bonuses.
Over 20 months into the COVID-19 pandemic, the United States finds itself grappling with a dire healthcare worker shortage that is posing significant challenges to patient care and hospital finances. The pandemic, marked by surges driven by variants like the delta variant, has stretched the nation’s healthcare system to its limits. To date, the U.S. has reported over 45 million COVID-19 cases and nearly 750,000 deaths, while hospitals have cared for millions of COVID-19 patients.
The toll on healthcare workers has been profound. A Kaiser Family Foundation/ Washington Post poll revealed that 3 in 10 health care workers contemplated leaving their profession due to the pandemic’s strain, with 6 in 10 citing pandemic-related stress as detrimental to their mental health. Hospitals, already facing estimated net income losses of $54 billion in 2021, have been hit hard by critical staffing shortages. Wages have surged as hospitals strive to retain and recruit staff, exacerbating financial challenges, with over one-third of hospitals projected to operate in the red by year’s end. Since the pandemic’s onset, hospital employment has decreased by nearly 94,000, further deepening the crisis. Job vacancies for healthcare personnel, including nurses and respiratory therapists, have risen significantly, adding to the staffing woes.
This staffing crisis has placed enormous financial burdens on hospitals, with labor expenses rising by 15.6% per adjusted discharge compared to pre-pandemic levels. Despite this, the number of staff available to treat sicker patients has decreased, with a simultaneous increase in patient acuity. Altogether, staffing shortages have cost hospitals $24 billion during the pandemic. Credit rating agencies predict ongoing financial challenges for hospitals due to wage inflation, costly contract nurse staffing, and expanded employee benefits. As the nation grapples with the ongoing pandemic, the urgency of expanding and retaining the healthcare workforce remains paramount, calling for Congressional action to ensure that patients and communities can continue to access care.
The consequences of this labor strife are far-reaching, and could be a sign of further labor trouble on the horizon. Recent research indicates that the United States is facing a significant shortage of healthcare professionals, with predictions suggesting a shortfall of up to 124,000 doctors across specialties by 2034. Additionally, almost one million registered nurses are expected to leave the healthcare workforce due to factors such as stress, burnout, and retirement by 2027.
Dave Regan, president of SEIU-United Healthcare Workers West, expressed frustration with Kaiser’s response to the staffing crisis, emphasizing the suffering of frontline healthcare workers and patients. The Coalition of Kaiser Permanente Unions encompasses a wide range of healthcare workers, including medical assistants, surgical and lab technicians, pharmacists, and administrative staff.
Kaiser, in response to the strike notice, has maintained that it has reached agreements with the Coalition in the past without resorting to strikes and remains committed to negotiating in good faith. However, the potential strike, if it unfolds as planned from October 4 to 6, could have significant implications for patient care and the broader healthcare landscape in the United States. The outcome of these labor negotiations will be closely watched as the nation grapples with an increasingly fragile healthcare system amidst a staffing crisis.