The largest healthcare worker walkout in US history is coming to a close, with a three-day strike by Kaiser Permanente employees scheduled to conclude early Saturday (Oct. 7). However, union leaders have hinted at the possibility of a longer strike.
Approximately 75,000 unionized Kaiser Permanente workers have been picketing hospitals and medical centers since Wednesday, demanding higher wages, improved staffing, and funding for education and training.
According to the Coalition of Kaiser Permanente Unions, if the company continues to engage in unfair labor practices and negotiate in bad faith, a 10-day strike may be called this Saturday.
Outsourcing and subcontracting have become major issues in the negotiations, with the unions emphasizing the need for limitations on both. They argue that addressing outsourcing is crucial for maintaining experienced healthcare workers and ensuring continuity of care for patients.
Kaiser Permanente has stated that the next bargaining session is scheduled for Oct. 12. The company aims to reach a new agreement that provides employees with competitive wages and benefits while ensuring affordable and accessible high-quality care for its members.
Outsourcing healthcare reduces high-quality patient care
A study published in 2021 by researchers from the Mays Business School at Texas A&M University revealed that outsourcing healthcare services can lead to inconsistencies in standards of care. The risks include medical errors, reduced satisfaction among patients and employees, damage to clinician morale and income, and negative impacts on an organization’s culture, reputation, and long-term financial performance.
The study found that while outsourcing may initially help with cost-cutting, it ultimately results in diminishing returns on investment.
The healthcare outsourcing market is projected to reach $468.5 billion by 2026, driven by the Affordable Care Act’s aim to lower costs and increase healthcare affordability. As a result, providers have turned to outsourcing in low-cost countries to reduce operational expenses.
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