One of the largest healthcare workers unions in the nation is speaking out against the intent of Madison N.J.-based lab giant Quest Diagnostics to acquire Hyannis, Mass.-based Cape Cod Healthcare's outreach lab services business, according to a Cape Cod Times report.
The union — 1199SEIU United Healthcare Workers East — told the publication this week it sent an opposition letter to the Massachusetts Health Policy Commission, an independent state agency in Boston. Nikko Mendoza of the union's Massachusetts division told Cape Cod Times the union is concerned about the "lack of transparency from Cape Cod Healthcare about the impact of the proposal on the patients and the workforce."
In addition, Jerry Fishbein, vice president of health systems at 1199SEIU United Healthcare Workers East, argued in a written statement the agreement "slash[es] vital jobs and potentially jeopardize[s] patient safety by outsourcing laboratory services to a company like Quest Diagnostics."
Cape Cod Healthcare signed a letter of intent with quest in June. Currently, CCHC is responsible for diagnostic testing within its outreach lab services business, which includes 14 freestanding lab services programs throughout Cape Cod, according to CCHC. As part of the partnership, that responsibility will shift to Quest, which will perform tests at its clinical laboratory in Marlborough, Mass.
The agreement with Quest is expected to affect approximately 55 full-time equivalent positions at CCHC's freestanding centers, as well as at core labs at Cape Cod and Falmouth hospitals. Under the partnership, CCHC will keep approximately 250 existing CCHC lab employees.
CCHC stressed the significance of the agreement in an emailed statement to Becker's Hospital Review, saying it "offers an important opportunity to enhance access to quality, affordable and convenient lab services, while reducing costs to our patients, physicians and other clinical partners."
"Insurers and government payers have demanded that we lower costs and made it clear that they do not expect to continue to reimburse us for the full cost of our lab testing in the long term. A rapidly changing healthcare environment, along with unsustainable costs, are forcing organizations like CCHC to make these kinds of difficult decisions," the system added.
CCHC also said it is confident in Quest and is "making every effort to limit the impact on our employees and provide pathways to other jobs within the organization." The system said affected employees will be considered for open CCHC positions per the terms of their existing labor contracts, and affected employees who fail to find other jobs within CCHC will be able to access severance and other transition services.