Health coalition negotiations with HCA remain contentious

Michelle Swafford

Tuesday, Feb. 8, 2005 | 10:52 a.m.

Two of the 11 Las Vegas Valley hospitals and Boulder City Hospital have agreed to new rate contracts for about 320,000 valley residents, but talks are breaking down with some of the hospitals.

The Health Services Coalition -- a nonprofit group of unions and employers that represents firefighters, police officers, teachers, construction workers and hotel and casino employees -- has been negotiating with Las Vegas Valley hospitals for several months.

Monday night contract negotiations were extended for a third time with San Francisco-based Catholic Healthcare West, owner of St. Rose Dominican Hospitals, Siena and Rose de Lima campuses. The hospitals and the coalition have seven days to reach an agreement.

"We're actively negotiating with St. Rose (and) part of that negotiation included extending that going forward," said Andy Brignone, lawyer for the coalition and some of its members.

A contract extension with HCA Inc., owner of Sunrise, Southern Hills and MountainView hospitals, is scheduled to expire at midnight today, and it is uncertain whether those talks will be renewed.

"We are highly reluctant to continue negotiating in an environment that is not conducive to good faith negotiations," said Amy Dirks Stevens, vice president of business development for HCA's Las Vegas operations.

On Monday night, several hundred coalition members rallied in front of Sunrise Hospital and Medical Center. The coalition has been the most vocal about HCA and has on several occasions said the company's Las Vegas hospitals are asking for exorbitant rates so they can send the money back to the corporate office in Nashville, Tenn.

"The negotiations with HCA are going nowhere," Brignone said. "They have been intransigent (and) have not engaged in good faith negotiations in our view."

The Health Services Coalition, formerly the Health Services Purchasing Coaltion, initially said Las Vegas Valley hospitals were asking for rate increases of between 15 percent and 20 percent, while it is willing to pay rate increases of up to 9 percent.

The chief executives of Sunrise, MountainView and Southern Hills issued a letter Feb. 3 to employees that said the rates proposed by the HCA hospitals are asking for single-digit rate increases.

It also said "the Coalition is reimbursing our hospitals below market rates. That's not right or fair. State-of-the-art health care is expensive and money is needed to fund technology upgrades, salary increases and new services."

The letter did say that the coalition was entitled to some discounts because it represents so many people, but the discount has to consider the cost of providing health care.

Brignone said HCA's proposed rate increases are just shy of 10 percent the first year and increase beyond that in the subsequent two years, which equates to a nearly 30 percent increase over three years.

"We've always been agreeable to rates that were fair and reasonable," he said. "We expect (HCA) will meet us at that goal."

Contract extensions with King of Prussia, Pa.-based Universal Health Services Inc. are scheduled to expire Wednesday night. Universal Health operates Desert Springs, Valley, Summerlin and Spring Valley hospitals, which are called the Valley Health System.

It is uncertain whether that contract and negotiations will be extended.

"We're negotiating with them as we speak and we hope to reach some kind of agreement with them this week and before the extensions expire," Brignone said.

Clark County-owned University Medical Center, IASIS Healthcare LLC-owned North Vista Hospital and Boulder City Hospital, owned by the city, agreed to "handshake agreements" last week and retroactive contracts will be signed once negotiations are complete at the other hospitals, Brignone said.

The coalition said last week that it is considering alternative health care options for its members including building its own hospital.

"It is prudent for us to plan for the worst-case scenario," Brignone said. "Our goal is to make sure that our 300,000 members have affordable access to hospital care. Affordable access is the cornerstone."

New hospitals in the southwest part of Las Vegas have ranged from $70 million to $140 million for construction, which does not include the costs associated with operating a hospital. New hospitals take at least 18 months to build.