Elsewhere online
February 26, 2015

Nonprofit Calif. Hospital Chain Sues Union That Opposed Sale

The Daughters of Charity Health System brought suit this week against the health care workers' union that bitterly opposed the struggling Catholic hospital chain's purchase by a for-profit company, San Francisco Business Times writes. According to the suit filed Monday, Service Employees International Union and a private-equity firm, Blue Wolf, "improperly interfere[d]" with Daughters of Charity's efforts to sell its six money-losing medical centers in Los Angeles County and the Bay Area.

Prime Healthcare's $843-million purchase of Daughters of Charity is in limbo as Prime weighs whether to proceed with the takeover under strict conditions California Attorney General Kamala Harris set for the deal last week. The Catholic network claims SEIU and Blue Wolf conspired to scare away potential bidders, exposing the nonprofit chain to the risk of bankruptcy. Dave Regan, president of the union's United Healthcare Workers West local, termed the suit a "legal hissy fit."