Danville, Pa.-based Geisinger and Lewisburg, Pa.-based Evangelical Community Hospital — now known as WellSpan Evangelical Community Hospital — have reached settlements to resolve allegations that the organizations had a secret “no-poach” agreement that suppressed healthcare wages in the region.
The settlements, which still must be approved in the U.S. District Court for the Middle District of Pennsylvania, total $28.5 million, with Geisinger agreeing to pay $19 million and ECH agreeing to pay $9.5 million, according to court documents accessed by Becker’s.
The settlements also include the release and dismissal of claims against Geisinger and ECH and would cover individuals who worked at the defendants’ facilities in Union, Snyder, Northumberland, Montour, Lycoming and Columbia counties from Jan. 1, 2014, through Aug. 5, 2020.
Approximately 12,000 healthcare workers would receive at least $250 each, with the average amount estimated at $1,500, a court document filed Oct. 3 states, PennLive reported Oct. 6. Members of Geisinger and ECH’s boards of directors, as well as their C-suite executives, are excluded from the settlement class.
“While we disagree with the allegations and believe our actions were appropriate, this settlement — which includes no admission of wrongdoing — reflects our decision to move forward and avoid the ongoing expense and distraction of litigation,” Geisinger said in a statement shared with Becker’s.
The health system added that the resolution “allows us to focus fully on what matters most — our patients, our people and the communities we serve. Our employees and clinicians are the heart of our organization. We remain deeply committed to fostering a workplace where every individual is respected, supported and recognized for their contributions.
“This settlement reinforces our commitment to building a strong, caring and forward-looking organization.”
Becker’s reached out to ECH and will update this story if a comment is received.
The settlements follow a lawsuit filed in 2021 against Geisinger and ECH. In the lawsuit, several nurses alleged the two organizations established a secret “no-poach agreement” to prevent Geisinger and ECH from recruiting each other’s employees. Plaintiffs alleged the agreement reduced competition in the market, keeping wages low for healthcare workers. They also said they may never have known about the arrangement if the Justice Department had not filed a civil class action against the two organizations in 2020 to block Geisinger’s partial acquisition of ECH. A settlement was reached regarding that litigation.
The U.S. District Court for the Middle District of Pennsylvania still must certify the litigation as a class action and approve the separate settlements announced in October, according to PennLive.
ECH is part of York, Pa.-based WellSpan Health. Washington, D.C.-based Risant Health, a nonprofit organization that is part of Oakland, Calif.-based Kaiser Permanente, acquired Geisinger in March 2024, though Geisinger kept its name.
