New York City hospitals and the SEIU United Healthcare Workers East have reached an agreement on a new contract designed to save the SEIU's troubled healthcare benefits fund, despite the fact that the current contract doesn't expire for another 15 months. The fund is facing a $700 million deficit over the next five years due to rising healthcare costs. The contract covers to 65,000 employees at 61 hospitals and 20 nursing homes. As part of the agreement, the hospitals will delay a scheduled 3 percent raise until December, which will allow them to contribute $466 million to the benefits fund over the next several years. The union is one of the few whose members contribute no out-of-pocket costs to their healthcare coverage.
For more on the agreement:
- read this New York Times article