FRI Health Care Report: Mercyhealth paying $1M to settle allegations of religious discrimination

From WisPolitics.com/WisBusiness.com …

— Mercyhealth will pay more than $1 million as part of an agreement to resolve allegations of religious discrimination related to employee COVID-19 vaccination exemptions, federal officials announced. 

The U.S. Equal Employment Opportunity Commission this week issued a press release detailing the agreement with the Illinois health system, which also has facilities in Wisconsin. Along with the settlement payment, the company has also offered to rehire workers that it fired for not complying with its COVID-19 vaccination policy, according to the release. 

After an investigation by the EEOC, the agency says it had “reasonable cause” to believe the health system discriminated against its employees based on their religion by denying religious accommodations for vaccine requirements and either firing the workers or deducting wages. 

It also found the company had likely discriminated against workers across all facilities by denying them the opportunity to request such an accommodation, and firing them or withholding pay, the release shows. 

In a statement included in the agency’s release, Mercyhealth Chief Nursing Officer Kara Sankey said the health system respects the religious beliefs and practices of its employees. 

“During the COVID-19 pandemic, Mercyhealth had to confront and address extraordinary challenges in order to carry out its charitable health care mission, while doing its best to protect the health and safety of its patients and its employees and comply with federal rules requiring all hospital staff receive vaccinations,” said Sankey, who’s also vice president of clinical operations for the health system. 

See the release below. 

— U.S. Sen. Tammy Baldwin is urging Ascension Wisconsin leadership to “reconsider” partnering with TeamHealth, as the health system is reportedly planning to outsource its Milwaukee-area intensive care staffing. 

In a letter to Ascension Wisconsin President and CEO Daniel Jackson, the Madison Dem referenced reporting from the Milwaukee Journal Sentinel that the health system plans to end contracts with local critical care doctors and work with TeamHealth instead. 

She noted the Tennessee staffing company is owned by private equity firm Blackstone and charges it has “a history of business practices that compromise patient care and safety.” Baldwin is raising concerns that Ascension’s cost-cutting measures “will once again come at the expense of patients,” leaving intensive care units in Milwaukee without enough doctors. 

In an emailed statement on the letter, an Ascension Wisconsin spokesperson said “we appreciate the Senator’s questions” and looks forward to engaging with Baldwin and her staff on this topic. 

“We welcome the opportunity to share how Ascension Wisconsin is improving care for the people of Wisconsin and how we are progressing in our shared goal of ensuring ongoing access to safe, quality healthcare,” the spokesperson said. 

Baldwin has previously raised concerns about Ascension’s cuts and other decisions impacting patient care, such as closing down facilities and “squeezing” staff. She argues her concerns “continue to be justified” as the health system is choosing to work with TeamHealth. 

“You are choosing to do business with a firm that has drawn intense scrutiny and litigation over its staffing practices and allegations of improper billing, overcharging patients to the point of fraud,” Baldwin wrote. 

TeamHealth did not immediately respond to a request for comment on Baldwin’s letter. 

See the release below. 

CORRECTION: An item in Tuesday’s Health Care Report should have said workers’ compensation insurance rates for employers will be 3.2% lower starting in October. 

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Press Releases

– U.S. Equal Employment Opportunity Commission: Mercyhealth to pay over $1 million to settle EEOC COVID-19 vaccine mandate-related religious discrimination charges 

– U.S. Sen. Tammy Baldwin: Presses Ascension on decision to outsource staffing of intensive care units to private equity-backed firm 

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