Daughters of Charity Health System, a six-hospital network based in Los Altos, Calif., has filed a lawsuit against Service Employees International Union and its United Healthcare Workers West affiliate alleging the union's attempts to sabotage the system's efforts to sell its hospitals cost DCHS tens of millions of dollars, according to a San Francisco Chronicle report.
In its lawsuit, DCHS claims SEIU pressured potential buyers of the system's hospitals to back out, which drove the price of the deal down. The system also claims the labor union's tactics delayed the sale of the hospitals, according to the report.
Regarding the lawsuit, Steve Trossman, an SEIU-UHW spokesperson, said "Daughters of Charity is losing $10 million a month and threatening bankruptcy, yet CEO Robert Issai decided it would be a good idea to spend the company's precious and dwindling resources on a frivolous lawsuit designed to punish workers for speaking out against selling the system to Prime Healthcare."
The lawsuit is pending in Santa Clara County Superior Court.
DCHS is still waiting to see if Ontario, Calif.-based Prime Healthcare Services will acquire the hospitals. Last week, California Attorney General Kamala D. Harris conditionally approved the transaction.
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