The largest healthcare worker walkout in US history is about to end, with a three-day strike by Kaiser Permanente employees set to conclude early Saturday (Oct. 7). But union leaders say a longer strike may follow.
Some 75,000 unionized Kaiser Permanente workers have been picketing hospitals and medical centers since Wednesday, demanding higher wages, better staffing, and funding for education and training.
The Coalition of Kaiser Permanente Unions said in a statement that a longer strike, lasting 10 days, may be called this Saturday should the company “continue to commit unfair labor practices and bargain in bad faith.”
Outsourcing and subcontracting became key sticking points in the talks, with the unions claiming Kaiser executives have “refused to put limitations” on either. Addressing outsourcing is critical in “keeping experienced healthcare workers in jobs and provide strong continuity of care for patients,” the coalition said.
According to Kaiser Permanente, the next bargaining session is scheduled for Oct. 12. “We look forward to reaching a new agreement that continues to provide our employees with market-leading wages and benefits, and ensures our high-quality care is affordable and available to meet our members’ needs,” the company said in a statement.
Outsourcing healthcare reduces high-quality patient care
A study published in 2021 and led by researchers from the Mays Business School at Texas A&M University found that farming out healthcare services can promote inconsistencies in standards of care. The risks include medical errors, declining patient and employee satisfaction, and damage to clinician morale and income, along with hits to a healthcare organization’s culture, reputation, and long-term financial performance.
The study found that outsourcing helps with cost-cutting in the short term, but eventually leads to diminishing returns on the investment.
The healthcare outsourcing market is estimated to reach $468.5 billion by 2026, according to the consultancy MarketsandMarkets. The rising demand largely has been driven by theAffordable Care Act, which aimed to lower costs and increase affordability of healthcare. Providers have turned to low-cost countries to handle more of their business processes, in order to reduce operational costs.