Ontario, Calif.-based Prime Healthcare Services has filed a federal lawsuit against several employee unions, alleging the unions are using extortionist tactics to prevent it from purchasing Los Altos Hills, Calif.-based Daughters of Charity Health System.
The system is accusing Service Employees International Union, SEIU-United Healthcare Workers West and the leaders of those organizations of targeting and attacking Prime, saying the defendants "issued malicious and false statements, funded operations with money unlawfully received in violation of federal law…and threatened to prevent acquisitions of hospitals by Prime Healthcare unless it concedes to the defendants' demands."
Under the Racketeering Influenced and Corrupt Organizations Act, or RICO Act, Prime is seeking damages to compensate for the unions' "unlawful conduct." Prime also says the lawsuit was filed to "reveal SEIU's illegal actions and to protect the rights of the hospitals and allow them to focus on providing quality healthcare to their patients."
According to an SEIU-UHW news release, Prime "demanded that SEIU-UHW support its bid to purchase Daughters of Charity Health System in exchange for dropping the lawsuit."
Many union members protested Prime's potential purchase of DCHS, expressing concerns that Prime won't adequately serve low income patients and could cut pay and benefits.
A Prime spokesman has said the system supports employees' rights.