Employee Sues Sutter over ‘Misuse’ of Medi-Cal Funds
Skilled nursing facility employee Sharon Daniels on Monday filed a class action lawsuit against Sutter Health, charging the hospital chain with misuse of Medi-Cal funds, the Sacramento Bee reports. Service Employees International Union Local 250 is backing Daniels' claim. According to the suit, Sutter Health and 11 of its affiliated hospitals have failed to use "hundreds of thousands of dollars" in increased Medi-Cal funds to improve wages and benefits for skilled nursing unit employees. In 1999, the state raised Sutter's Medi-Cal payments "under the condition" that the funds be used to "boost compensation of direct patient caregivers on skilled nursing units." SEIU said that Sutter has failed to use the funds as directed, prompting the union to support Daniels' suit. Sutter officials declined to comment, stating they had not yet reviewed the lawsuit (Rapaport, Sacramento Bee, 1/10).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.