Another indictment of for-profit health care
NY hospitals owe workers $100 million
By Sharon Eolis
New York
Did you know that New York hospitals have
ripped off over $100 million from the benefit funds of union
workers? Accord ing to an article in the April 14 New York
Times, three dozen hospitals in the city and its suburbs have
fallen far behind in payments to employee benefit and pension
funds in recent years.
SEIU/1199, with 100,000 members in hospitals, nursing homes
and some drug stores, has borne the brunt of this loss of
funds. In addition, the New York State Nurses Association and
the Nassau County Benefit Fund have waited months for
delinquent payments.
The crisis in New York is the worst in the country. The
arrears have doubled since 2003. "This is absolutely the worst
situation we've seen both in terms of the dollars and the
number of institutions involved," said Mitra Behroozi,
executive director of the funds--separate entities that are
controlled jointly by the union and the hospitals.
The health care industry is one of the largest employers in
the New York area. Documents given to the Times by a fund
official showed that hospitals owed more than $130 million,
including interest, to the fund as of March 31. According to
Behroozi, payments over the next two weeks reduced the amount
owed by about $6 million.
The unions are in a difficult position when they push for
the payments. The hospitals often cut services and/or lay off
hospital employees. Eight hospitals and health care facilities
have closed since 2002. This year three dozen hospitals and
nursing homes have fallen behind in benefit payments. "The
bottom line is, from the union's perspective, the obligation is
to make these payments," said Jennifer Cunningham, the
executive director of the Service Employees International Union
in New York. "But if it's really a troubled institution,
insisting can result in lots of problems."
Eight health care institutions account for two thirds of the
debt. They are Brook dale Medical Center in Brooklyn; Jamaica
and Parkway hospitals in Queens; St. Vincent's, Beth Israel,
North General and Cabrini in Manhattan; and Our Lady of Mercy
in the Bronx. Two of the employers--Brookdale and Cabrini--have
had large fund debts for over a year.
The present hospital debt crisis is an example of how the
capitalist boom and bust cycle leads to an out-of-control
economy. Hospitals are run for profit, not human needs. The
federal and state governments have slashed Medicare and Medi
caid payments to health care institutions and don't pay in a
timely manner, so hospitals have outstanding bills. The costs
for pharmaceuticals, equipment and benefits have increased. In
a competing market place, the hospitals act like typical bosses
and hold back on workers' benefits.
This crisis has led to the closing of a number of New York
hospitals in the past two years. Those that try to keep going
are stopping the hemorrhage with a band-aid.
What is the answer? A health care system set up for human
need, not capitalist greed. A system that plans for health care
for all the people and not just those who can pay for it.
The big business politicians will scream, "Where's the money
to pay for it?" But the war in Iraq has cost hundreds of
billions of dollars, killed and wounded tens of thousands of
Iraqis and thousands of U.S. soldiers, exacerbating the health
care crisis. There was plenty of money for that and for the
"endless war" that Bush is bent on.
Before the U.S. war in Iraq and over a decade of sanctions,
Iraq had a modern, nationalized health care system that
provided free health care for all. Why is the U.S. the only
industrialized country with no national health care system?
The U.S. needs to follow the example of socialist Cuba and
build a health care system that meets the needs of the people.
But the people will have to put up a mighty struggle to win
health care for all.
Eolis is a health care worker in New York.
Reprinted from the May 6, 2004, issue of
Workers World newspaper
This article is copyright under a Creative
Commons License.
Workers World, 55 W. 17 St., NY, NY 10011
Email: ww@workers.org
Subscribe wwnews-subscribe@workersworld.net
Support independent news http://www.workers.org/orders/donate.php)
HOME
:: U.S. NEWS ::
WORLD NEWS ::
EDITORIALS ::
SUBSCRIBE ::
DONATE
Email
this article
Printable
page