In April, the Los Angeles County Board of Supervisors thought they had required all employers contracted by the county for non-medical hospital personnel to provide employer-paid, healthcare benefits.
But as it turned out, due to a loophole, healthcare benefits were not added and in some cases, old contracts were extended without these benefits.
Since the April 4 board order only applied to new contracts, the changes did not go into effect for employees working under existing contracts with third-party employers. Also, the county Department of Health Services (DHS) extended some contracts, meaning the existing terms carried over. And supervisors said the new contracts were taking too long.
On Tuesday, Dec. 5, the board unanimously passed a new order that will close that loophole. The order directed DHS to amend existing contracts to require 100% employer-paid healthcare premiums for hospital contract employees who work 30 hours or more per week. The action requires the healthcare benefit to take effect no later than March 31, 2024.
The board order affects about 1,600 janitorial, environmental, security and food service workers at hospitals owned and operated by the county.
The five county-owned and operated hospitals are Los Angeles General Medical Center, Martin Luther King, Jr., Harbor-UCLA, Olive View-UCLA Medical Center and Rancho Los Amigos National Rehabilitation Center.
“These workers are frustrated and they’ve even voted to strike over this issue,” said Fourth District Supervisor Janice Hahn, a co-author of the motion.
The passage of the fix-it order averted a strike by the SEIU-United Service Workers West (USWW). “The strike was called off. We had authorized a three-day strike across the L.A. County hospital system,” said Sebastian Silva, union spokesman.
About 100 union members were in attendance Tuesday to support the motion. Many testified they were pleased that the contracts would be reopened to include the healthcare benefit.
“I have three months of medical bills I owe to the hospital I actually work for. I don’t know how I am going to pay them,” said Darren Archer, a contract worker at Los Angeles General Medical Center.
First District Supervisor Hilda Solis said these workers came to work during the pandemic, risking their lives. “They didn’t have a choice. They couldn’t telework,” Solis said. “Many have been giving decades of service to the county and many shared they had personal losses and lost revenue.”
Maria Blanco, who disinfects rooms at L.A. General, said she cannot afford treatment for her diabetes because she can’t pay for federal or private health insurance. “Because of this motion, we will no longer be denied healthcare,” she said.
Hahn said the county is required to contract out certain services if it is determined to be cheaper than hiring county employees. Often, that means a company will supply workers but not provide health insurance.
“Sometimes, the savings the county sees comes at the cost of the worker, through lower wages and lower benefits,” Hahn said. “The county shouldn’t be cutting costs on the backs of our hospital workers.”
Although cheaper contracts may save the county money in the short term, many workers go to county emergency rooms for their doctor visits, which costs the county DHS more in the long term, Hahn said. Other supervisors agreed.
“We are either going to pay now, or pay later,” said Fifth District Supervisor Kathryn Barger.
The cost of amended contracts will undoubtedly rise as contractors tack on the added expense of paying for healthcare premiums. County CEO Fesia Davenport said the county does not yet know what that amount will be.
Dr. Christina Ghaly, director of the county DHS, said her department, along with Davenport and the Office of County Counsel, will have to go back and amend 10 existing contracts. She explained this could be a difficult process.
“I’m convinced we are going to get there,” Barger said.
Davenport pointed out that going back to the contractor, who now knows that the added benefits must be in place no later than March 31, 2024, gives the contractor the advantage during negotiations.
“The vendors now know the board is directing them to do this, it paints us into a corner,” Davenport said. She said she wanted DHS to watch its bottom line. “If the cost, let’s say, is not reasonable, then at what point does DHS come back to the board and say ‘these costs are not reasonable’?”
But Hahn insisted that the amendments to the contracts be done by the deadline. Meanwhile, Ghaly said this new direction could push back negotiations on future contracts.