Matthew Fontana Discusses Health Care Unions With DealFlow's Healthcare Services Investment News

In “Exclusive: Do Hospital Physician and Resident Unions Deter Investors?” DealFlow’s Healthcare Services Investment News turned to labor and employment partner Matthew Fontana for his commentary on the unionizing among health care staff seeking increased wages and better working conditions.

Fontana explained it is the residents and nurses who are increasing the ranks of unionized health care staff, not physicians. Resident organizing attracts “more ink” than physician staff unionizing because it has traditionally occurred less often, he said.

Fontana noted the reasons for unionizing are not the same for physicians, residents and nurses, and that while each group may seek collective bargaining for an increase in compensation, residents and nurses often have additional concerns.

“Nurses are getting burned out, but health care systems are fighting mandated ratios,” said Fontana, adding that the friction between medical staff and management can be attributed to a lack of communication. “An overarching issue is the perception that management isn’t listening.”

Before an investor considers bankrolling the purchase of a hospital, health care facility or other medical entity, it is imperative to consult with an attorney specializing in labor and employment law, explained Fontana. He added that the verbiage and laws governing collective bargaining agreements differ depending on whether the facility is a public or private health system.

Fontana commented that even if the doctors, residents or nurses at any given health care-related entity an investor wishes to purchase are not unionized at the time of the purchase, additional due diligence should be considered. “Sometimes investors want to conduct an analysis of the likelihood of unionization,” he explained.